The Cabinet launched a special mechanism for controlled arms export: how it will work
Prime Minister of Ukraine Yulia Svyrydenko announced that the Government is launching a special mechanism for the controlled export of Ukrainian weapons and defense technologies.
“Every export contract must serve the main goal — a strong defense industry in Ukraine and more domestic weapons for our Army.
20% of the funds from the export of finished products and technologies and 30% — from the export of components will be directed to a special state budget fund for the development of the Ukrainian defense industry,” she said.
The head of government emphasized that the minimum contract amount for finished products is from 15 million UAH. This restriction does not apply to components.
“The new mechanism will operate during martial law. It introduces transparent export rules to partner states within the Drone Deal format.
At the same time, the needs of the Defense Forces remain an unconditional priority.
If the manufacturer confirms the ability to simultaneously fulfill both state and export contracts, they will be able to carry out exports. Permission may be denied if the Ministry of Defense or another state customer plans to purchase these goods for Ukraine's defense needs or if the goods are included in the List of critical goods,” Yulia Svyrydenko emphasized.
According to her, the Ministry of Defense will update the list of critical goods and technologies quarterly, and the Ministry of Foreign Affairs will update the list of countries allowed for export.
“We also protect Ukrainian technologies. They will be transferred without alienation of intellectual property rights, with control over use and re-export.
Today, more than half of the weapons on the front line are of Ukrainian production. Ukrainian arms manufacturers are increasing production of unmanned systems, electronic warfare means, ammunition, components, and other defense technologies,” she added.
How the mechanism will work
In turn, the Minister of Defense of Ukraine Mykhailo Fedorov explained how the new mechanism will work:
- partner countries of the Drone Deal, with which Ukraine has corresponding intergovernmental agreements, will have the opportunity to purchase Ukrainian weapons, technologies, and work directly with Ukrainian manufacturers;
- a transparent procedure for reviewing export applications from manufacturers is introduced. Applications will be reviewed within a clearly defined period — up to 30 days. The mechanism applies to the transfer of weapons and defense technologies worth from 15 million UAH;
- the list of partner countries will be formed by the Ministry of Foreign Affairs, and the list of critical goods that cannot be transferred — by the Ministry of Defense together with other authorized bodies;
- Ukrainian technologies remain under state protection. Transfers will occur without alienation of intellectual property rights, and re-export or transfer to third parties is possible only with Ukraine's written consent. If products made using Ukrainian technologies are exported to third countries, 20% of their value will go to the state budget.
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