Ukraine Eyes Multi-Billion Dollar Defense Export Return After Wartime Ban

Ukraine has authorized its first military equipment exports since Russia's 2022 invasion, with officials projecting potential sales worth several billion dollars this year. A senior defense official says the country has approved most applications from 40 defense companies seeking to sell military goods and services abroad. Ukraine suspended all weapons exports when the war began but has since dramatically expanded its defense manufacturing capabilities.

Ukraine has given the green light to resume military equipment exports for the first time since Russia’s invasion began, with a top defense official projecting sales could reach multiple billions of dollars in 2024.

Davyd Aloian, who serves as deputy secretary of Ukraine’s National Security and Defence Council, revealed that government commissioners recently approved most requests from 40 defense companies seeking permission to sell military products and services internationally.

The war-torn nation completely stopped all weapons exports when Moscow launched its full-scale attack in February 2022, instead focusing entirely on securing arms from international partners to fight off Russian forces.

During this period, Ukraine significantly ramped up its domestic weapons production, especially in drone and missile technology. The country’s extensive combat experience has sparked a major surge in defense innovation and manufacturing.

When asked about this year’s export possibilities, Aloian explained: “Taking into account ready-made products, spare parts, components, and services that can be provided, it amounts to several billion dollars.”

He noted the export potential now “significantly higher” compared to pre-war levels.

However, Aloian cautioned against expecting an immediate surge in weapons sales, emphasizing that Ukraine’s own military requirements remain the top priority as Russian forces continue pushing forward in eastern regions while launching strikes across the country.

Meanwhile, U.S.-mediated peace negotiations have stalled over Russia’s insistence on territorial concessions.

International allies have shown strong interest in acquiring Ukraine’s advanced military technology, according to Aloian. He identified Germany, Britain, the United States, Nordic nations, three Middle Eastern countries, and at least one Asian nation as particularly eager buyers.

One Middle Eastern country with historical defense trade ties to Ukraine is examining opportunities in drone technology and heavy military vehicles, though Aloian declined to specify which nation.

Ukraine plans to prioritize sales to countries providing the strongest wartime support, Aloian said.

The government also wants to emphasize joint ventures and collaborative partnerships with foreign nations to bring in investment capital, establish new weapons supply routes to combat zones, and gain access to cutting-edge technologies. This approach takes precedence over simply selling finished products, Aloian added.

Defense companies have been urging Ukraine to restart exports, warning the country risks missing opportunities in the global arms marketplace. Several manufacturers have already established overseas subsidiaries.

“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 stated. “And then come commercial interests.”

Ukrainian officials are also weighing the implementation of export taxes on defense producers.

While no final decision has been reached, Aloian believes such taxes would help justify resuming exports by generating revenue for Ukraine’s underfunded military needs.

Among the approved applications, none involve selling complete weapons systems ready for immediate use, Aloian clarified. Most applications actually focus on reimporting military equipment back to Ukraine for frontline use.

Some approvals relate to equipment for the Ukraine-U.S. FrankenSAM initiative, which creates surface-to-air missile defense systems by combining Ukraine’s Soviet-era equipment with Western missiles.