The Cabinet of Ministers of Ukraine has approved a new mechanism allowing exports of Ukrainian defence products and technologies during martial law. The framework is intended to facilitate defence exports to trusted partner countries, support the scaling of Ukraine's defence industry, attract investment and strengthen international defence cooperation. As the respective Cabinet resolution has not yet been officially published, the summary below is based on official announcements by the Government, including statements by the Prime Minister and the Minister of Defence:
Drone Deal framework
The mechanism will apply to countries that conclude a Drone Deal with Ukraine, an intergovernmental framework agreement intended for strategic partner states providing defence or other support to Ukraine.
Drone Deals have already been signed with Latvia, Lithuania, Qatar, the UAE, Saudi Arabia and Azerbaijan. According to the Government, negotiations are also underway with the United States and several EU Member States, with the longer-term objective of concluding a comprehensive arrangement with the European Union.
Export procedure
The mechanism introduces a simplified export licensing procedure. Applications for contracts exceeding UAH 15 million for ready-made defence products and technologies are to be reviewed within 30 days, without the previously required review by the Interdepartmental Commission on Military-Technical Cooperation. Prior to applying for an export permit, exporters must nevertheless complete the preliminary export control procedures or engage a licensed state intermediary.
Eligibility requirements
To obtain an export permit, manufacturers must demonstrate their ability to fulfil both existing state defence contracts and the proposed export contract. An export licence may be refused where the Ministry of Defence requires the relevant products or technologies to meet Ukraine's immediate defence needs or where they are included in the List of Critical Goods and Technologies. The Ministry of Defence and the Ministry of Foreign Affairs are expected to update the lists of critical goods and eligible partner countries on a quarterly basis.
Financial and IP safeguards
The mechanism introduces mandatory contributions from export revenues to support domestic defence production. Exporters of ready-made products and technologies will contribute 20% of contract revenues to a dedicated state fund, while exports of component parts will be subject to a 30% contribution. The framework also contains safeguards for Ukrainian defence technologies, including a prohibition on the transfer of intellectual property rights, as well as strict end-use monitoring and re-export restrictions.
The new mechanism marks a significant shift in Ukraine's defence export policy, enabling Ukrainian defence manufacturers, which currently produce more than half of the weaponry used by the Armed Forces of Ukraine, to access foreign markets while maintaining safeguards designed to protect Ukraine's national defence interests.