What Changed?
| Law | Core Provision | Who Benefits |
|---|---|---|
| Law № 4473-IX | Amends the Customs Code to eliminate import duty on goods brought in for national-security or defense purposes—including fiber-optic cables used in tethered and FPV drones. | Domestic UAV manufacturers, EW integrators, and state-order suppliers. |
| Law № 4474-IX | Inserts matching changes to the Tax Code, zero-rating VAT on the same categories of imported inputs. | All entities importing materials or sub-systems under MoD or allied law-enforcement tenders. |
Both bills, signed this week by President Volodymyr Zelensky, take effect the day after official publication.
Why It Matters for Industry & Investors
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Cost Curve Shift
• Fiber-optic spooled guidance can represent up to 25 % of a tethered drone’s BOM; duty/VAT relief removes €35–€40 per unit on average.
• Total landed cost of imported inertial sensors, EO payloads and composite fabrics also drops 20 %-plus. -
Production Scale-Up Targets
• Government procurement plan: 10 million drones in 2025.
• New law aligns tax regime with that volume ambition, smoothing supply-chain bottlenecks. -
Finance & Grants
• Measures dovetail with zero-interest MoD working-capital loans, preferential grants (up to UAH 20 m) and rapid acceptance protocols adopted earlier this spring.
Broader Regulatory Tailwind
| Recent De-Bureaucratisation Move | Effect on OEMs |
|---|---|
| Acceptance of UAV/EW systems without on-site government inspectors | Cuts hand-over lead-time by ~30 days per lot. |
| Granting FPV fiber-optic drones military-standard codification | Allows immediate issuance of state-order contracts. |
| Streamlined export permits for surplus drones | Unlocks foreign-sales revenue, sustaining R&D cash-flow. |
Take-Away for Foreign Partners
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Component Suppliers: Zero customs + VAT means faster, cheaper entry for optics, RF modules, Li-ion packs—raising competitiveness versus domestic substitutes.
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Joint-Ventures: Tax-free import window reduces capex risk for co-production lines inside Ukraine’s new industrial parks.
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Investors: With fiscal friction removed and a committed state-order pipeline, Ukraine’s drone and EW cluster offers an accelerated path to scaled revenue in 2025-27.
“These laws slash the landing costs of critical components and help us hit the 10-million-drone production target,” a senior MoD procurement official told EBA Defence Working Group.
The message from Kyiv is clear: defense tech manufacturing is open for business, and the tax man is stepping out of the way.
