Ukraine has opened exports of arms and defense technology to partner countries for the first time since Russia’s full-scale invasion, as its defense industry has developed production capacity beyond the country’s needs.
Under the “first transparent mechanism,” countries participating in Ukraine’s Drone Deal initiative can procure Ukrainian weapons and technologies directly from domestic manufacturers, Ukrainian Defense Minister Mykhailo Fedorov said on Telegram.
Ukraine’s Drone Deal framework currently includes 27 participating countries, including 15 NATO members.
The new framework authorizes exports of advanced military systems worth at least $335,000 and sets a standard 30-day review period for manufacturers’ applications.
“Ukrainian defense technology has already proven its effectiveness on the battlefield,” Fedorov said.
“Our task is to create conditions under which Ukrainian manufacturers will be able to scale production, open new markets, and attract international investment, without losing the priority of providing for the defense forces.”
Exports to Drive Industry Growth
Ukraine imposed wartime export restrictions to ensure domestically produced weapons were prioritized for its military.
Four years into the war, the country’s defense production capacity has expanded 35-fold — from $1 billion to $35 billion — while domestic contracts reportedly covered only about a third of that capacity last year. Output is projected to reach $55 billion in 2026.
With domestic demand unable to absorb the industry’s growing output, foreign orders are expected to generate several times more revenue than domestic procurement, enabling manufacturers to further expand capacity.
Safeguards
To maintain strict security controls, the foreign ministry will oversee the list of approved buyer countries, while the defense ministry will designate equipment prohibited from export.
The framework prohibits the re-export or third-party transfer of Ukrainian technology without Kyiv’s written consent. Countries using Ukrainian technology to manufacture products for export to third countries must transfer 20 percent of the product’s value to Ukraine’s state budget.
Exports remain subject to domestic military requirements, with the government retaining the authority to block shipments of equipment needed on the frontline. Manufacturers may fulfill foreign orders only after meeting their state defense contracts.
