Ukraine is preparing for a potential surge in defence exports this year, with projections reaching several billion dollars, according to a senior Ukrainian official. This comes after Kyiv authorised its first wartime foreign sales and is considering a tax on defence exports to support domestic military needs.
Davyd Aloian, deputy secretary of Ukraine’s National Security and Defence Council, said most of the 40 applications submitted by defence sector producers have now been approved for export. These include materiel, components, and military services—but not ready-to-use weapons.
Ukraine halted weapons exports after Russia’s February 2022 invasion, relying heavily on international partners for arms supplies. At the same time, the country invested heavily in its domestic armaments industry, especially drones and missile technology, resulting in a notable defence technology boom.
Aloian emphasized that while the export potential is substantial—“several billion dollars” when counting finished products, spare parts, and services—Ukraine’s own military needs remain the top priority. The ongoing conflict in the east and airstrikes in distant towns mean frontline readiness cannot be compromised.
Interest from abroad is strong. Germany, Britain, the U.S., Nordic nations, several Middle East countries, and at least one Asian nation have shown keen interest in Ukraine’s advanced defence technology. One Middle Eastern nation, in particular, is exploring drones and heavy vehicles, though Aloian declined to name the country. Priority for exports will go to Kyiv’s strongest wartime allies.
Beyond immediate sales, Ukraine is also looking to create joint ventures and cooperative projects that attract investment, open new supply chains, and provide access to cutting-edge technologies. Aloian stressed that the focus is not simply selling ready-made products, but building systems that benefit both the country and its partners.
Domestic defence manufacturers have urged Kyiv to resume exports to stay competitive in the global arms market. Some companies have already set up overseas subsidiaries. Aloian clarified, “There is no goal to lock all manufacturers here. The system will prioritise the frontline and national interests first, and commercial interests second.”
A potential export tax for defence producers is also under consideration. While no final decision has been made, the revenue could help fund Ukraine’s underfinanced military requirements.
Of the approved applications, none involve direct weapons exports. Most are related to re-importing equipment for frontline use, while some are tied to the Ukraine-U.S. FrankenSAM program, which blends Soviet-era missile systems with Western technology.
At the heart of all these moves is Ukraine’s determination to balance economic opportunity with national security—ensuring that innovation and wartime experience are translated into both battlefield advantage and long-term growth for its defence industry.
