Ukrainian civil and military aviation are interconnected technologically, in terms of personnel, and infrastructure. Despite the common stereotype of a complete separation between these spheres, in practice, they utilize shared engineering solutions and repair facilities. Aviation expert Kostyantyn Kryvolap shared this in an exclusive comment to UNN.
Today, Ukrainian civil aviation is experiencing one of the deepest crises in its history. Due to the closed airspace caused by the war, airlines were forced to relocate abroad, spending significant funds to maintain bases, personnel, and fleets in other countries. The industry has effectively been left without systemic state support and a long-term survival strategy. All of this creates risks of gradual degradation of aviation infrastructure and the loss of competencies that were formed over decades. This process directly affects not only civil transportation but also the state's defense capability. After all, aircraft repair enterprises continue to operate in Ukraine; they were previously focused on repairing civil aircraft, but with the start of the full-scale invasion, they reoriented to servicing military equipment.
According to Kryvolap, basic technologies in civil and military aircraft construction are largely the same.
"The technologies used in civil aviation, in aircraft construction, in engine manufacturing, are basically the same, but there are specifics. For example, for military aviation, if it's a fighter jet, it needs an afterburner. There are no afterburners in ordinary civil engines. But what is called a gas generator—the main part where air is compressed and fuel is supplied—can be the same,"
The expert cited a number of historical examples where the same technologies were used in both civil and military aviation. In particular, NK-12 engines were installed on both Tu-114 passenger planes and Tu-95 strategic bombers. A similar situation, according to him, occurred with the Ukrainian transport aircraft An-10, An-8, and An-12.
According to Kryvolap, the connection between civil and military aviation is no less close in the field of repair and maintenance. According to Kryvolap, aircraft repair is an extremely specialized field where everything depends on the type of equipment, the enterprise's infrastructure, and the qualifications of the personnel.
"There are regulations, and besides regulations, there can also be emergency repairs. Therefore, if we take serial use, aircraft repair enterprises are oriented toward a specific type (of aviation transport – ed.). But at the same time, it may be that they repair helicopter engines, fighter jets, and planes from, let's say, civil aviation,"
He cited the example of the Konotop Aircraft Repair Plant, which specializes in helicopters. "A helicopter can be military, or it can be civil. The same Mi-8 is used in civil aviation, military aviation, and transport," the expert noted.
It is obvious that the shutdown or decline of civil aviation enterprises could create serious risks for the country's entire aviation industry. After all, it is not just about passenger transportation, but about preserving unique production competencies, engineering schools, repair bases, and personnel who work simultaneously for both the civil and military sectors.
The issue of personnel is particularly critical. After the closure of Ukrainian airspace, a significant portion of civil crews and pilots were forced to move to work abroad so as not to lose their certification and flight practice.
"If they don't fly for two years, it is then very difficult for them to restore their certification. Therefore, everyone went to work where there is an opportunity to fly,"
As a reminder
Investigators of the Bureau of Economic Security (BES) have already opened a number of criminal proceedings involving almost all Ukrainian companies that lease aircraft abroad from non-resident companies of Ukraine. Investigators are convinced that airlines should have paid royalties in Ukraine—a fee charged for the use of intellectual property. At the same time, the fact that transport is not intellectual property is completely ignored, and Conventions for the avoidance of double taxation are in force between Ukraine and a number of countries. According to these agreements, Ukrainian companies pay taxes in the countries where the leasing companies are residents. At least 5 airlines have already suffered from BES pressure: UIA, "Constanta Airline", "Urga", "H3OPERATIONS", and "Skyline". Furthermore, court materials indicate similar approaches in other industries, with attempts to impose an additional levy on leased railway transport and even agricultural machinery.
It is important to note that for over 30 years, the legislation regarding the taxation of leasing in Ukraine has not changed, and previously it did not raise questions or remarks from either tax or law enforcement authorities. Therefore, there are obviously no justified grounds for the BES investigators to change the interpretation of the legislation, and the situation looks exclusively like pressure on business that harms the state.
The situation changed after the State Tax Service of Ukraine published an article on May 24, 2024, with clarifications regarding the taxation of leasing operations by airlines. In these "reflections on the topic," tax officials point out that the leasing of aircraft from non-resident companies must be taxed as royalties. At the same time, the tax authorities juggle articles of international conventions on the avoidance of double taxation, claiming that for aircraft rentals, airlines must pay fees as if for the use of intellectual property.
Such an approach is not just an erroneous interpretation of tax law norms, both Ukrainian and international, but a "tax on the Ukrainian flag," which makes Ukrainian air carriers uncompetitive on the global market and threatens the destruction of the entire civil aviation industry.