Ukraine may export military goods and services worth several billion USD this year after allowing the first overseas sales in wartime, and is considering imposing tariffs on these items, a senior defense official said.
Earlier this month, the state committee in charge of wartime licensing approved most of the 40 applications for exporting supplies and services from defense enterprises, shared Deputy Secretary of the National Security and Defense Council of Ukraine, Mr. Davyd Aloian.
Ukraine has stopped exporting weapons after Russia launched a military campaign in February 2022 and is heavily dependent on weapons supplies from partners for defense. At the same time, Kiev is pouring resources into developing the defense industry, especially UAVs (unmanned aerial vehicles) and missiles, creating a breakthrough in defense technology thanks to its real-world experience.
When asked about this year's export potential, Mr. Aloian said: "In terms of complete products, spare parts, components and services that can be supplied, the figure is up to several billion USD." He said the total potential is "significantly higher" than before the conflict.
However, Mr. Aloian - a member of the export licensing committee - cooled down expectations of an immediate arms export boom because, according to him, the needs of the Ukrainian army must be put first, in the context of Russian forces continuing to advance in the east and airstrikes on cities far from the front lines, while US-mediated peace talks are stalled due to territorial concessions from Russia.
According to Mr. Aloian, allies expressed interest in Ukraine's defense technology, including Germany, Britain, the United States, Nordic countries, 3 Middle Eastern countries and at least 1 Asian country.
Export priorities will be given to countries that strongly support Kiev in the conflict. Ukraine is also aiming for joint ventures and other forms of cooperation to attract financial resources, create new arms supply chains for the front lines and access new technologies - which Mr. Aloian considers more important than just exporting complete products.
Among the approved applications, there were no cases related to complete arms exports; mostly for the purpose of re-importing weapons for use on the front lines.
Ukraine is also considering imposing export taxes on defense enterprises. Although there is no final decision yet, Mr. Aloian believes that this measure could help the state have more revenue to meet the remaining military needs.
