Penalties, export bans kill Ukraine's defense industry - MP Yanchenko

She said this on Espreso TV.

"Currently, it is necessary to change the legislation because, in a country at war, the state and state customers systematically discriminate against Ukrainian arms manufacturers. None of the restrictions imposed on Ukrainian manufacturers apply to foreign companies in the defense-industrial complex," Yanchenko noted.

According to the Ukrainian lawmaker, Ukrainian arms manufacturers face a number of restrictions, starting with the fact that state customers artificially limit company profits, which on average amount to only 5-7%. The ban on arms exports forces the Ukrainian defense-industrial complex into a monopoly situation with the state as the sole customer, allowing the state to dictate any conditions. In addition, there are severe penalties. The legislation contains many contradictions and overlapping regulations.

"For example, when it comes to such a violation as delays in arms delivery, three separate fines are imposed for it. That is, three penalties for one violation – this is a legal absurdity. It contradicts legal logic and common sense. In reality, this destroys the defense-industrial complex. For the first month of delay alone, a 13% fine is imposed. No business can afford to pay a fine twice the size of its profit," Yanchenko emphasized.

• On January 3, Ukraine's Prime Minister Denys Shmyhal held the first government meeting of 2025 and spoke about the plans of the Ukrainian defense industry for this year.