Ukraine opens controlled exports of weapons and defence technologies to drone deal partners

On 1 July 2026, the Cabinet of Ministers of Ukraine approved a procedure establishing a dedicated mechanism for the controlled export of Ukrainian-made military and dual-use goods and defence technologies during martial law. The relevant resolution was published today on the Government’s official website.

The procedure enables exports to states that have entered into international or intergovernmental agreements with Ukraine under the “Drone Deal” framework. Ukraine is reportedly already in talks with the US and EU countries to sign and implement such agreements, with deals reportedly concluded to date with the Netherlands, Lithuania, and Latvia. The Ministry of Foreign Affairs will maintain the list of partner states eligible for such export operations.

The procedure applies to transfers of military or dual-use products adopted into service or codified by the Ministry of Defence of Ukraine, as well as relevant technologies for the production of such products. For finished products and technologies, it covers contracts valued at UAH15 million (approx. USD335,000) or more. No minimum-value threshold applies to the export of components.

Importantly, IP registration remains in Ukraine, and technology is transferred for use only – without the right to further assign or sub-license. Exports are permitted subject to the importing state providing intergovernmental guarantees that any further sale, re-export, or temporary export of goods manufactured using the transferred technologies will take place only with the prior written permit of the State Export Control Service of Ukraine.

To be able to export and file for an export permit, a manufacturer must first prove that it has the capacity to complete both its existing effective State defence contracts and the proposed export contract simultaneously. Failure to meet obligations to State defence customers is itself a ground for suspension or revocation of the permit. A permit may also be denied if the Ministry of Defence or another State customer plans to procure the relevant goods for Ukraine’s defence needs, or if the goods are on the List of Critical Goods (to be maintained by the Ministry of Defence) – although, where the manufacturer can guarantee both priority State supply and delivery of the export volume, State demand alone will not be grounds for refusal.

Separately, a payment is due for the issuance of the permit, calculated as a percentage of the value of the goods: 20% for finished products, for technologies, and for the re-export to third countries of goods manufactured using transferred technologiesб and 30% for components. Reportedly, these funds are intended to support the development of Ukraine’s defence industry.

Finally, the regulation does not relieve manufacturers from following the standard export-control procedure and obtaining an export-control permit. It does, however, shorten the term of permit issuance to 30 days, primarily by removing the requirement to clear the transfer with the Interdepartmental Commission on Military-Technical Cooperation and Export Control Policy.

Additional notes

For further information on the topic please contact managing partner Mykola Stetsenko, partners Vadim Medvedev and Andriy Romanchuk, counsel Anna Kolodenska, managing associate Rostyslav Mushka, or by telephone +380 44 591-3355 or via e-mail.