Ukrainian arms manufacturers face the risk of disrupting international contracts worth tens of millions of dollars because the government-approved arms export mechanism is still not fully operational. This was stated by Serhiy Vysotsky, Deputy Head of the National Association of Ukrainian Defense Industries (NAUDI), during the Export Forum, emphasizing the critical nature of the situation for the domestic defense-industrial complex.
Escalation of Negotiations and Market Loss Threat
Following official announcements about opening the export track, foreign partners significantly intensified their dialogue with Ukrainian companies. Some agreements are already in the final stages of preparation, and with state permission, deals worth tens of millions of dollars could be concluded within three days. However, international customers are not prepared to wait endlessly for procedural issues to be resolved. If the situation does not change by the end of the current year, Ukraine risks completely losing these opportunities in foreign markets.
Obstacles Posed by Administrative Fees
Experts cite a twenty percent administrative fee and the current procedure for its administration as the main barrier to launching export deliveries. Such a markup makes traditional Ukrainian weapons uncompetitive against global alternatives, as standard weapons manufacturers compete fiercely with other players. At the same time, unique high-tech developments, such as modern drone systems, possess greater resilience due to their exclusivity, whereas mass-market armaments require flexible pricing.
Market Expectations and Agency Positions
Representatives of the defense sector expect the country's leadership to review current financial terms. The Ministry of Defense and the National Security and Defense Council have already prepared relevant initiatives, and manufacturers are now awaiting decisions at the level of the Supreme Commander-in-Chief's Staff. Earlier, on July 1, 2026, the Cabinet of Ministers adopted Resolution No. 875, securing the priority of supplying the Defense Forces and establishing permit fees of 20% for finished products and 30% for components.
Significance of Export Potential for the Economy
The full-scale launch of arms exports is of strategic importance not only for maintaining the financial stability of defense enterprises but also for replenishing the state budget through tax and license revenues. Restoring lost positions and regaining the trust of foreign customers in the event of delay may take from six to twelve months. This is why the prompt adjustment of export procedures is called a critically important step to preserve the country's defense potential.
