Ukraine's defense industry pushes for controlled arms exports

The National Association of Ukrainian Defense Industries / NAUDI reports on the topics discussed at the roundtable.

Dmytro Natalukha, Chairman of the Verkhovna Rada Committee on Economic Development, highlighted the critical importance of creating a favorable investment climate to enhance cooperation in the development of military technologies in Ukraine's defense industry. “Today, the issue of scaling up production can only compete with the issue of financing it,” said Dmytro Natalukha. According to him, the event was organized to explore how the controlled opening of surplus arms exports can bring additional funds to Ukraine.

The meeting was attended by representatives of Ukrainian defense industry companies and specialized associations and unions, including the FRU Defense, Technological Forces of Ukraine, League of Defense Enterprises of Ukraine, and NAUDI. During the event, representatives of the military-industrial complex assured that their absolute priority is to meet the needs of Ukrainian Security and Defense Forces. At the same time, they drew the attention of MPs to the fact that the production capacity of the domestic defense industry can reach up to $20 billion annually, but the budget currently allows for the purchase of only $6 billion worth of weapons and ammunition.

Representatives of the defense industry emphasized the need for a comprehensive approach to exports, which should take into account the position of the military, executive authorities, special services, and manufacturers. The opening of exports could be a strategic step to strengthen the country's economy and develop the defense industry. Currently, due to the lack of funding, defense companies may go bankrupt, as all working capital is invested in the development of new technologies and expansion of production. According to representatives of the defense industry, if exports are opened in a controlled manner, Ukraine could receive up to $2 billion in additional tax revenues in a year and a half. Accordingly, these additional funds will be used to purchase weapons and ammunition for Ukrainian Defense Forces.

“Today, Ukrainian manufacturers do not have a direct legal ban on exporting their products and goods, but in the context of an active war, the issue of authorizing arms exports becomes particularly complex and important. The Parliament should become a platform for finding the right solution, which should be developed together with the relevant agencies, manufacturers and, above all, the military, who know the actual needs here and now, from the battlefield. These needs must be met first, and anything that is surplus and not contracted by the state can be discussed as part of the issue of opening exports,” said Oleksandr Marikovskyi, Chairman of the Subcommittee on Regional Cooperation and Trade of the Committee on Economic Development, summarizing the event.

Members of Parliament and representatives of the defense industry agreed to draft a concept for controlled export of military products during the war for further discussion at the next working meeting. The opening of military product exports is an important step that could not only strengthen Ukraine's economic resilience but also support the development of the national defense industry in the challenging conditions of war.