Ukraine to draft controlled arms export concept

A working group of lawmakers and defense industry representatives plans to develop a concept for controlled export of military products during wartime, as was announced by the Verkhovna Rada's Committee on Economic Development following a roundtable meeting held on August 28.

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"Currently, only the issue of financing can compete with the question of scaling up production," said committee chairman Dmytro Natalukha.

The meeting discussed the problem of arms exports by Ukrainian companies. The National Association of Ukrainian Defense Industries (NAUDI) noted that military product exports could bring the state up to $2 billion in additional tax revenue over a year and a half.

The production capacity of Ukraine's defense industry amounts to $20 billion annually, while the state budget can only purchase weapons and ammunition for $6 billion.

It was noted during the meeting that, due to a lack of funds, defense enterprises may face bankruptcy, as all working capital has been invested in developing new technologies and expanding production.

Opening exports could be a strategic move to strengthen the country's economy and develop the defense industry. At the same time, additional taxes would be directed towards purchasing weapons and ammunition for the Defense Forces.

"Today, Ukrainian manufacturers have no direct legal prohibition on exporting their products, but in conditions of active war, the issue of allowing arms exports becomes particularly complex and important," said Oleksandr Marikovski, Chairman of the Subcommittee on Regional Cooperation and Trade.

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