In a significant strategic shift, Ukraine has initiated the export of arms and defense technology to partner nations for the first time since the onset of Russia’s full-scale invasion. This development comes as the nation’s defense industry expands its production capacity, exceeding local demands.
Ukrainian Defense Minister Mykhailo Fedorov announced via Telegram that under the newly established “first transparent mechanism,” participating countries in Ukraine’s Drone Deal initiative can now procure weapons and technologies directly from domestic manufacturers. This initiative currently includes 27 countries, of which 15 are members of NATO.
The framework governing these exports allows for the sale of advanced military systems valued at a minimum of $335,000, with a standardized review period of 30 days for manufacturers’ applications. The Defense Minister emphasized the battlefield-proven effectiveness of Ukrainian defense technology and highlighted the importance of creating conditions for domestic manufacturers to scale production, access new markets, and attract international investment while prioritizing support for Ukrainian defense forces.
For years, Ukraine maintained wartime export restrictions, ensuring that domestically produced weapons were allocated primarily for its military needs. However, four years into the ongoing conflict, the country’s defense production capacity has skyrocketed. It has expanded from $1 billion to an estimated $35 billion, though domestic contracts accounted for only about a third of that capacity last year. Projections suggest that output could reach $55 billion by 2026.
Due to the inability of local demand to keep pace with production levels, foreign orders are anticipated to generate significantly more revenue than domestic procurement, positioning manufacturers to further enhance their capacities.
To ensure robust security measures, the Ukrainian Foreign Ministry will manage the list of countries approved for purchasing these arms, while the Defense Ministry will identify any equipment that cannot be exported. Notably, the framework forbids the re-export or third-party transfer of Ukrainian technology without explicit written consent from Kyiv. Additionally, any country utilizing Ukrainian technology to manufacture products for export to third nations must remit 20 percent of the product’s value to Ukraine’s state budget.
While the new export framework opens doors for international partnerships, it does not compromise Ukraine’s military needs. The government retains the authority to block shipments of essential equipment that is needed on the frontline, allowing manufacturers to fulfill foreign orders only after meeting their obligations for state defense contracts.
