Ukraine's defense product exports could reach "several billion dollars" this year - NSDC Deputy Secretary
Kyiv • UNN
Ukraine could export military goods and services worth "several billion dollars" this year. The possibility of introducing a tax on these exports is being considered.
Ukraine could export military goods and services worth "several billion dollars" this year after allowing its first wartime foreign sales, and is considering imposing a tax on these exports, said Davyd Arahamia, Deputy Secretary of the National Security and Defense Council of Ukraine, in an interview with Reuters, writes UNN.
Details
Earlier this month, a state commission dealing with relevant wartime licenses approved most of the 40 applications from defense sector manufacturers to export materials and services, Arahamia said in an interview.
Ukraine suspended arms exports after Russia's invasion in February 2022 and has largely relied on partners' arms supplies to defend against Russian forces.
At the same time, Ukraine has invested resources in developing its defense industry, including drones and missiles. Leveraging its vast combat experience, Ukraine has seen a boom in defense technologies in recent years.
Asked about this year's export potential, Arahamia replied: "Considering finished products, spare parts, components, and services that can be provided, this amounts to several billion dollars."
Overall, the potential is "significantly higher" than pre-war exports, he said.
But Arahamia, who is a member of the commission that authorizes exports, downplayed talk of an immediate export boom for arms manufacturers and developers.
Ukraine's own military needs must come first, he said.
Ukraine's allies have expressed interest in acquiring its advanced defense technologies, Arahamia said, naming Germany, the UK, the US, Northern European countries, three Middle Eastern countries, and at least one Asian country among the most interested.
One Middle Eastern country, which has a long history of arms trade with Ukraine, is exploring opportunities in the drone and heavy equipment sectors, Arahamia said, declining to name the country.
Priority will be given to exports to countries that are Ukraine's biggest supporters in the war, Arahamia said.
Ukraine also seeks to prioritize joint ventures and other forms of cooperation with foreign countries to attract financial resources, create new arms supply chains to the front, and access new technologies. This is more important than simply exporting ready-to-use products, Arahamia added.
Zelenskyy received the first jointly produced attack drone in Germany13.02.26, 14:14 • 11755 views
Defense manufacturers, the publication writes, are pressuring Ukraine to resume exports, saying it risks losing opportunities in the global arms market. Some have already established subsidiaries to operate abroad.
"There is no desire or goal to lock all manufacturers here and just leave their own... There is an approach, and it is focused on creating a system that prioritizes the front line and national interests," Arahamia said. "And then commercial interests follow."
Ukraine is also considering imposing an export duty on defense manufacturers, he said.
Although a final decision has not yet been made, he believes that this measure would justify the state's decision to resume exports, as Ukraine could use the revenues for its own underfunded military needs.
Among the applications approved by the commission, none concern the export of ready-to-use weapons, Arahamia said, and most are aimed at re-importing weapons to Ukraine for use on the front line. "But some are related to equipment for the Ukrainian-American FrankenSAM program, which develops anti-aircraft missile systems by combining Soviet systems owned by Ukraine with Western missiles," the publication writes.