Ukraine announces framework for wartime arms exports
New Export Rules for Ukrainian Arms Manufacturers
By Max Hunder and Ronald Popeski
Overview of the Export Framework
KYIV, July 1 (Reuters) - Ukrainian arms manufacturers will be able to export products and components under a new framework that channels a percentage of revenues into a state defence fund, Prime Minister Yulia Svyrydenko said on Wednesday, as Kyiv seeks to raise funds for its burgeoning weapons industry.
Ukraine announced it was permitting wartime arms exports in February, but manufacturers have since complained of regulatory barriers as the government has retained tight control and threshed out a framework to regulate deals.
Need for Defence Industry Funding
However, the country also needs funding for its defence industry, which has swelled since Russia's 2022 invasion, to further expand capacity and invest into research and development.
Details of the Revenue Levy Scheme
Svyrydenko, writing in English on X, said the scheme would levy 20% of proceeds from finished defence goods and 30% from components.
Requirements and Restrictions for Manufacturers
She said manufacturers would have to prove their capability to fulfill Ukrainian defence orders and export contracts simultaneously, and restrictions would apply to items placed on a list of critical goods.
Strategic Goals of Export Contracts
"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 Period and International Cooperation
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 would operate under the aegis of bilateral "drone deals" which Ukraine has already struck with some European and Middle Eastern states, and is seeking to sign more, including with the United States.
Technology Transfer and Intellectual Property
Svyrydenko said Ukrainian technologies will be "transferred without assigning intellectual property rights and will remain subject to controls on their use and re-export."
Domestic Production and Industry Expansion
She added that more than 50% of weapons in battlefield use by Ukraine were domestically produced and that defence manufacturers "continue to expand production of drones, electronic warfare systems, ammunition, components and other critical defense technologies".
(Reporting by Max Hunder and Ronald PopeskiEditing by Gareth Jones and Chizu Nomiyama)