Ukraine Eyes Billions in Revenue from Controlled Defense Industry Exports

Ukraine will prepare a concept for controlled exports of weapons produced by Ukrainian defense companies.

The National Association of Defense Industry Enterprises of Ukraine (NAUDI) stated that the opening of military exports could be a strategic step to strengthen the country’s economy.

“At present, the issue of scaling up production can only compete with the issue of financing it,”said Dmytro Natalukha, Chairman of the Verkhovna Rada Committee on Economic Development.

The meeting participants discussed the issue of arms exports by Ukrainian companies.

NAUDI noted that the export of military products can bring the state up to $2 billion in additional tax revenues in a year and a half.

The production capacity of the Ukrainian defense industry is up to $20 billion a year, while the state budget is able to purchase weapons and ammunition for only $6 billion.

“Currently, due to the lack of funding, defense companies may go bankrupt, as all working capital is invested in the development of new technologies and expansion of production,” the meeting participants noted.

The opening of exports could be a strategic step to strengthen the country’s economy and develop the defense industry.

At the same time, the additional taxes will be used to purchase weapons and ammunition for the Defense Forces.

“Today, Ukrainian manufacturers have no direct legal ban on exporting their products and goods, but in the context of the active war, the issue of allowing arms exports becomes particularly complicated and important,” said Oleksandr Marikovskyi, Chairman of the subcommittee on regional cooperation and trade.

In July 2024, Maryna Bezrukova, director of the Defense Procurement Agency of the Ministry of Defense, stated that Ukrainian companies should be able to export some of their weapons.

On August 12, Ukraine announced the creation of a working group to develop a mechanism for exporting military equipment from domestic factories.

(https://mil.in.ua/en/news/ukraine-eyes-billions-in-revenue-from-controlled-defense-industry-exports/

I bet 3/4 of the money sent to them for war has been going into this, and now they are asking for more