Why Ukraine Is Rethinking Weapons Exports
Although Ukrainian legislation does not prohibit the export of military technologies, domestic producers have not yet been granted permission to sell their weapons abroad. This situation may soon change as the government works on mechanisms to legalize and regulate arms exports in response to unused production capacity and limited state contracts.
According to Ihor Fomenko, former Deputy Minister of Economy, discussions on arms export mechanisms have been ongoing at various levels for several months:
“A political decision on the mechanism for opening arms exports may be made as early as May. Both the president and Mr. Yermak [head of the Presidential Office] were actively involved and have been monitoring the issue since September.”
Underutilized Defense Industry Spurs Action
One of the main motivations behind the proposed changes is the underutilization of domestic production capacity. In 2024, only 37% of Ukrainian manufacturers’ capabilities in electronic warfare systems and drones were used — primarily due to a lack of long-term contracts with the government.
“If the state does not have the resources for long-term contracts, controlled exports are a compromise option,” said Kateryna Mykhalko, Executive Director of the Technological Forces of Ukraine association.
Scenarios for Controlled Export
Ukrainian policymakers are exploring several frameworks for enabling exports while ensuring national security:
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Creation of a National Weapons Procurement Fund
A portion of the proceeds from international arms sales would be directed to a dedicated fund for purchasing weapons for the Armed Forces of Ukraine. -
Imposition of Export Tariffs
Additional customs duties could be introduced on weapons sold abroad, with revenues channeled into the state defense budget. -
Tiered Export Permissions
The government may approve exports only for specific categories of non-critical or mass-produced equipment such as UAVs, EW tools, and ammunition that do not pose strategic security risks.
What’s Next?
According to an anonymous source from a Ukrainian UAV manufacturing company, real progress began only in mid-April, after months of slow political movement. Many industry leaders are now cautiously optimistic that a breakthrough decision will be made in May 2025.
Strategic Implications of Opening Arms Exports
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Support for local defense companies through international revenue
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Increased investments and innovation in military tech due to higher demand
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Stronger global footprint for Ukrainian defense products
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Sustainable funding for the Armed Forces through reinvested export proceeds
