Starting from July 1, Ukraine opens controlled arms exports: how the new mechanism will work
From now on, Ukrainian defense enterprises are getting a legal pathway to enter international markets even during martial law. According to Government Resolution No. 875, the state is launching a special format of agreements ("Drone Deal"), which allows selling military technologies and dual-use goods abroad, while maintaining the absolute priority of supplying the national Defense Forces.
Key conditions:
International transfers are available exclusively for companies that have passed official registration with the State Export Control Service.
- Supplies are not permitted just anywhere, but only to pre-approved partner states with which bilateral cooperation documents have been signed.
- For agreements on the supply of finished products, a basic financial threshold is set — the contract amount must be at least 15 million UAH.
- Financial restrictions do not apply to the export of individual components or spare parts.
- The stated review period for applications for international transfer permits will be up to 30 days.
The new regime will operate not only as a source of income for individual manufacturers but also as a financing tool for the entire defense-industrial complex of Ukraine. A portion of the profit from each transaction will mandatorily be directed to a special fund of the state budget: 20% from the sale of finished technical solutions, and 30% from the sale of components.
To ensure that commercial interests do not harm the country's defense capabilities, the Ministry of Defense will regularly update the list of critical products whose export is strictly prohibited. In addition, strict supervision over intellectual property is being introduced. The transfer of developments occurs without the alienation of copyrights, and any subsequent re-export of technologies to third countries is possible only after official approval from the Ukrainian side.
The launch of this mechanism creates space for attracting foreign investment and scaling up production. However, companies will have to adapt their internal processes in advance; this is a complex process that requires flawless legal preparation.
Our team will provide for you:
- organization of fast registration of your enterprise as an entity of international arms transfers;
- expertise and classification of your products (preliminary and full identification);
- structuring of foreign trade contracts taking into account all financial, tax, and security nuances;
- conducting compliance checks on foreign counterparties and collecting the necessary permitting documentation.