The Ukrainian government is launching a special mechanism for the controlled export of Ukrainian-made weapons and defense technologies to partner countries under the Drone Deal framework, Prime Minister Yulia Svyrydenko announced.
"Every export contract must serve the main goal – strengthening Ukraine's defense industry and increasing the supply of domestically produced weapons for our military. Twenty percent of proceeds from exports of finished products and technologies, and 30% from exports of components, will be allocated to a special state budget fund for the development of Ukraine's defense industry," Svyrydenko wrote on Telegram on July 1.
According to her, the minimum contract value for finished products is UAH 15 million, while no such threshold applies to components. The new mechanism will remain in force for the duration of martial law and establishes transparent rules for exports to partner countries under the Drone Deal framework.
Defense Minister Mykhailo Fedorov explained how the new mechanism will work:
- Partner countries participating in the Drone Deal framework that have relevant intergovernmental agreements with Ukraine will be able to purchase Ukrainian weapons and defense technologies and work directly with Ukrainian manufacturers.
- A transparent procedure for reviewing export applications submitted by manufacturers will be introduced. Applications will be processed within a maximum of 30 days. The mechanism applies to transfers of weapons and defense technologies valued at UAH 15 million or more.
- The Ministry of Foreign Affairs will compile the list of partner countries, while the Ministry of Defense, together with other authorized agencies, will determine the list of critical items that cannot be exported.
- Ukrainian technologies will remain protected by the state. Exports will not involve the transfer of intellectual property rights, and any re-export or transfer to third parties will require Ukraine's written consent. If products manufactured using Ukrainian technologies are exported to third countries, 20% of their value will be paid into the state budget.
The government emphasized that meeting the needs of Ukraine's Defense Forces remains an "absolute priority."
"Exports will only be permitted if the needs of the Ukrainian military are fully guaranteed. If the state requires a particular type of weapon, export authorization may be denied. At the same time, a manufacturer will be allowed to export its products if it can guarantee the simultaneous fulfillment of both the state defense contract and the export order," Fedorov said.
He described the launch of defense exports as "another step toward developing Ukraine's defense industry and strengthening the economy."
Prime Minister Svyrydenko noted that more than half of the weapons currently used on the front line are produced in Ukraine.
