Defence official: Ukraine eyes multi-billion dollar arms exports

Ukraine could export several billion dollars’ worth of military goods and services this year after authorising its first foreign sales since Russia’s full-scale invasion, a senior defence official has said, as Kyiv also considers introducing a tax on such exports.

Earlier this month, the state commission responsible for wartime export licences approved the majority of 40 applications submitted by defence sector producers, Davyd Aloian, deputy secretary of Ukraine’s National Security and Defence Council, told Reuters in an interview.

Ukraine suspended weapons exports following Moscow’s February 2022 invasion and has since relied heavily on arms supplies from international partners to defend itself against Russian forces. At the same time, Kyiv has invested heavily in expanding its domestic defence industry, particularly in drones and missile systems. Drawing on extensive battlefield experience, Ukraine has in recent years seen rapid growth in defence technology development.

Asked about export potential for this year, Aloian said: "Taking into account ready-made products, spare parts, components, and services that can be provided, it amounts to several billion dollars."

He added that overall export potential is "significantly higher" than pre-war levels.

However, Aloian cautioned against expectations of an immediate surge in weapons exports. Ukraine’s own military requirements remain the priority as Russian forces continue to advance in the east and conduct airstrikes on cities far from the front line. Meanwhile, U.S.-brokered peace talks have stalled amid Russian demands for territorial concessions.

Ukraine’s allies have expressed strong interest in acquiring its defence technologies, particularly systems refined under combat conditions. Aloian identified Germany, Britain, the United States, Nordic countries, three Middle Eastern states and at least one Asian country as among the most interested.

One Middle Eastern country with a longstanding history of arms trade with Ukraine is exploring cooperation in drones and heavy vehicles, though Aloian declined to name the country.

Priority for exports will be given to Kyiv’s strongest supporters in the war, he said. Ukraine is also seeking to emphasise joint ventures and broader industrial cooperation over straightforward sales of finished weapons systems.

Such partnerships, Aloian explained, would help attract financing, establish new supply chains to support frontline needs, and provide access to advanced technologies — a strategy he described as more important than simply exporting ready-to-use products.

Defence manufacturers have pressed the government to resume exports, warning that prolonged restrictions could cause Ukraine to lose its position in the global arms market. Some companies have already established subsidiaries abroad to maintain commercial operations.

"There is no desire or goal to lock all manufacturers in here and just keep our own... There is an approach, and it is focused on making a system that prioritises the frontline and national interests," Aloian said. "And then come commercial interests."

Ukraine is also considering introducing an export tax on defence producers. While no final decision has been taken, Aloian said the measure could help justify the resumption of exports by directing additional revenue toward underfunded military needs.

Among the applications approved so far, none involve the export of ready-to-use weapons, he noted. The majority are linked to arrangements that would ultimately see arms reimported to Ukraine for frontline use.

Some applications are related to equipment for the Ukraine–U.S. FrankenSAM programme, which is developing surface-to-air missile systems by combining Soviet-era platforms operated by Ukraine with Western-supplied missiles.

By Sabina Mammadli