The Cabinet of Ministers has finally launched a mechanism for the export of Ukrainian weapons and defense technologies. How it works
On July 1, the Cabinet of Ministers approved a resolution on controlled exports of weapons and defense technologies. This was announced by Prime Minister Yulia Svyrydenko and Defense Minister Mykhailo Fedorov. The mechanism operates within the framework of the Drone Deal format — intergovernmental agreements that Zelenskyy announced back in April.
Let us recall: the production potential of the Ukrainian defense industry in 2026 exceeds $50 billion, but actual orders are only $15 billion. That is, more than two-thirds of the capacity is idle. The new mechanism is designed to allow manufacturers to fill this gap through international contracts — without waiting for a government order.
On July 1, the Cabinet of Ministers approved a resolution on controlled exports of weapons and defense technologies. This was announced by Prime Minister Yulia Svyrydenko and Defense Minister Mykhailo Fedorov. The mechanism operates within the framework of the Drone Deal format — intergovernmental agreements that Zelenskyy announced back in April.
Let us recall: the production potential of the Ukrainian defense industry in 2026 exceeds $50 billion, but actual orders are only $15 billion. That is, more than two-thirds of the capacity is idle. The new mechanism is designed to allow manufacturers to fill this gap through international contracts — without waiting for a government order.
How it works
The manufacturer can submit an application for export and receive a response within 30 days without mandatory consideration by the Interdepartmental Commission (this reduces the time frame by three times compared to the old procedure). There is one condition: the manufacturer must guarantee the simultaneous execution of the state contract and the export order. If the Ministry of Defense or another state customer needs this product, permission will not be granted.
The minimum contract amount for finished products is UAH 15 million. There is no threshold for components. The mechanism is valid during martial law.
The Ministry of Foreign Affairs will form and update a list of countries that are allowed to sell. The Ministry of Defense will create a quarterly list of critical goods that cannot be transferred at all.
Money and IP
20% of exports of finished products and technologies and 30% of exports of components will be allocated to a special state budget fund for the development of the defense industry. That is, each international contract automatically finances the further development of the industry.
Separately, there is protection of intellectual property: technologies are transferred without alienation of rights. If the partner wants to sell further, written consent from Ukraine is required, and 20% of the cost of such re-export will go to the Ukrainian budget.
«Ukrainian defense tech has already proven its effectiveness on the battlefield. Now the task is to create conditions under which Ukrainian manufacturers will be able to scale production, open new markets, and attract international investments,» Fedorov noted.
What is Drone Deal?
Drone Deal is a special format of intergovernmental agreements that covers the joint production of UAVs, missiles, shells and equipment, as well as the transfer of software and integration with defense systems of partners. First, a framework intergovernmental agreement is signed on the principle of reciprocity — then state bodies and manufacturers directly join the process.
Zelensky announced this format in April, at the same time stating that the surplus of production capacities for certain types of weapons already reaches 50%. Ukraine is already opening arms export centers in Europe — ten are planned by the end of the year. In April, at an exhibition in Berlin, Ukrainian companies showed seven drone systems and the TerMit ground robotic complex, developed within the framework of Ukrainian-German cooperation.
