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Ukraine Launches Controlled Arms Exports to Finance Defense

by Roman Cheplyk
Friday, October 3, 2025
2 MIN
Ukraine Launches Controlled Arms Exports to Finance Defense

The government plans to sell surplus weapons under strict state control to generate funds for the military while safeguarding the combat readiness of the Armed Forces

Strategic Initiative: "Technological Bet"

Ukraine is preparing to launch controlled arms exports as part of a new initiative called “Technological Bet”, aimed at increasing funding for the purchase of weapons for its military.

The announcement was made on October 3 by Rustem Umerov, former Defense Minister and Secretary of the National Security and Defense Council (NSDC).

“We will export only what is in surplus and has free production capacity. The priority remains to preserve the potential for the needs of the Armed Forces of Ukraine and guarantee the security of supplies,” Umerov emphasized.


How It Will Work

  • Exports only under state control.

  • Sales limited to surplus weapons and equipment not affecting Ukraine’s combat capability.

  • Revenue directed to the state budget to finance further defense procurement.

A preparatory meeting was held with the Ministry of Defense, Ministry of Economy, Ministry of Finance, military leadership and intelligence. Participants assessed production capacities, available stockpiles, and potential volumes.

The government, Defense Ministry, and intelligence agencies will now prepare a comprehensive report outlining:

  1. Timing of the launch.

  2. Volumes of exports.

  3. Mechanisms of sales.


Expected Outcomes

The initiative seeks to:

  • Bring additional funds to the state budget.

  • Maintain priority for the Armed Forces of Ukraine.

  • Ensure transparency and security in arms sales.

The approach reflects Ukraine’s effort to combine defense self-sufficiency with international arms market participation, leveraging its growing defense-industrial base.


Wider Context: ATACMS Negotiations

This initiative comes as Ukraine continues negotiations with Washington regarding the use of ATACMS long-range missiles (up to 300 km).

  • Ukrainian intelligence stresses that ATACMS could strike Russian strategic bases relocated more than 500 km from the border.

  • Current Ukrainian strikes rely on drones with small 5 kg warheads, whereas ATACMS carry 500 kg warheads, capable of significantly greater impact.


Outlook

Controlled arms exports mark a new financing mechanism for Ukraine’s defense sector. By carefully balancing domestic needs and export opportunities, Kyiv aims to secure additional resources for the war effort while also strengthening its position as an emerging defense technology producer.

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