The Verkhovna Rada of Ukraine has taken a significant step toward strengthening the financial foundation of the domestic defense-industrial complex and supporting the Defense Forces. In the first reading, lawmakers successfully backed bill No. 15400, which fundamentally changes the approach to distributing financial revenues from state export control. The initiative stipulates that 100% of the fees for processing and issuing permit documents in the sphere of military and dual-use goods will be channeled into a special state budget fund, from which the money will be targetedly transferred to the Ministry of Defense of Ukraine.
Essence of the Legislative Initiative and Fund Distribution
According to the provisions of the bill amending the Budget Code of Ukraine, all license fees and payments for export documents in the military sector will no longer dissolve into general budget expenditures. Deputy Minister of Defense Hanna Hvozdiar emphasized that the export potential of the Ukrainian defense industry and the primary supply of the frontline are closely interconnected national priorities. The proposed mechanism guarantees that collected funds will be distributed in equal proportions strictly across two areas: financing the procurement and repair of weapons, and military personnel compensation.
Context of Ukrainian Defense Industry Development and Export Mechanism
The new bill organically complements the state strategy to restart arms exports amid the ongoing full-scale war. Back on July 1, 2026, Cabinet Resolution No. 875 entered into force, establishing clear rules and fees for processing permits—20% of the cost of finished products and 30% of the cost of components, under the absolute priority of domestic supplies for the Armed Forces of Ukraine. President Volodymyr Zelenskyy previously noted that the Ukrainian defense industry already possesses capacities exceeding state budget capabilities, making controlled access to foreign markets a critical tool for survival and production growth.
Contradictory Data
Despite broad support for the initiative in parliament and active discussion in expert circles, debates persist regarding the exact volume of potential revenues and potential risks. Critics and certain specialized experts point to the difficulty of forecasting exact deductions to the Ministry of Defense special fund, as export volumes depend on geopolitical conditions and existing restrictions on supplies to specific jurisdictions. At the same time, defense agency representatives insist on the transparency of procedures and assure that supplies abroad will in no way weaken the country's defense capabilities, but rather create an additional financial buffer for army modernization.
Prospects and Expert Assessments
Defense market experts assess the adoption of the bill in the first reading as a positive and pragmatic signal for Ukrainian manufacturers. The opportunity to reinvest funds from export duties directly into the army and new developments allows domestic enterprises to keep production lines running. Representatives of the Ministry of Defense note that the current vote is just another step toward building a perfect, transparent, and efficient architecture of military-technical cooperation between Ukraine and international partners.
