Ukraine to Channel Military Export Proceeds to Boost State Defence Fund
Ukraine Implements New Scheme for Defence Export Proceeds
Overview of the Defence Export Scheme
July 1 (Reuters) - Ukrainian Prime Minister Yulia Svyrydenko said on Wednesday that a percentage of arms exports, finished products and components would be channelled into a state defence fund under a scheme to permit controlled exports of domestically produced technologies.
Allocation of Export Proceeds
Svyrydenko, writing in English on X, said the scheme would apply to 20% of proceeds from finished defence goods and 30% from components.
Strategic Objectives
"Every export contract must serve one strategic goal: strengthening Ukraine’s defence industrial base and delivering more weapons for our Armed Forces," Svyrydenko wrote.
Operational Framework During Martial Law
The system would operate throughout the period of martial law, which has been in effect in Ukraine since Russia's invasion in February 2022. She said it sets out rules for partner countries under a series of "drone deals" for joint production that Ukraine is seeking to conclude with various countries.
Requirements for Manufacturers
Manufacturers would have to prove their capability to fulfil state defence orders and export contracts simultaneously and restrictions would apply to goods placed on a list of critical goods.
Domestic Production and Expansion
Svyrydenko said that more than 50% of weapons in battlefield use were produced in Ukraine and that defence manufacturers "continue to expand production of drones, electronic warfare systems, ammunition, components and other critical defense technologies".
(Reporting by Ron PopeskiEditing by Gareth Jones)
