Ukraine Launches Regulated Arms Export Program to Bolster Defense Industry

How Ukraine’s Controlled Export System for Weapons and Defense Tech Will Work

According to Кабмін: Ukraine’s government has announced a new mechanism for the regulated export of weapons and defense technologies, as revealed by Prime Minister Yuliia Svyrydenko. Under the updated rules, 20% of revenue from finished products and technologies, along with 30% from component exports, will be funneled into a special state budget fund aimed at strengthening the country’s defense-industrial base. Contracts for finished goods must be worth at least 15 million hryvnias, while components face no such minimum threshold.

This controlled export framework will remain in effect throughout martial law. Ukrainian arms will be exported only to partner nations under the Drone Deal initiative. The needs of Ukraine’s Defense Forces will always take precedence in this process.

“Every export contract must serve the core goal: a strong defense production sector in Ukraine and more domestically made weapons for our military,” Svyrydenko emphasized.

Manufacturers can export only after proving they can simultaneously fulfill both state and export contracts. However, if the Ministry of Defense or another state buyer plans to purchase those items for defense needs, or if the goods appear on the Critical Items List, export permits may be denied. The Defense Ministry will update that list quarterly, while the Foreign Ministry will also revise the list of approved destination countries every quarter.

“We are also protecting Ukrainian technologies. They will be transferred without any waiver of intellectual property rights, with strict controls on use and re-export,” Svyrydenko added.

Currently, over half of the weapons used on the front lines are Ukrainian-made, and domestic arms manufacturers are rapidly scaling up production of drone systems, electronic warfare tools, ammunition, components, and other defense technologies.

Introducing this regulated export system marks a key step toward strengthening Ukraine’s defense capabilities and meeting national needs under martial law. Channeling funds into the state budget’s special account for defense industry growth will sustain and expand local production, which in turn supports the economy. The regular updates to critical goods and partner-country lists also reflect a systematic approach to export oversight and national security.