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Ukraine Moves to Lift Weapons Export Ban as Domestic Arms Industry Booms, Forbes Reports

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Dariia Mykhailenko
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Ukraine Moves to Lift Weapons Export Ban as Domestic Arms Industry Booms, Forbes Reports
A Ukrainian tank crew of the 33rd Separate Mechanized Brigade load tank ammunition onto a Leopard 2A4 tank during a field training exercise in Ukraine, on April 30, 2025. (Source: Getty Images)

Ukraine is preparing to lift its long-standing ban on the export of domestically produced weapons. 

According to Forbes Ukraine, the policy shift has already received preliminary approval from President Volodymyr Zelenskyy, with a final political decision anticipated in May.

This marks a major development for Ukraine’s defense industry, which has grown significantly since the start of Russia’s full-scale invasion. As Ukrainian arms manufacturers scale production, the government is now exploring options to allow international sales while ensuring the needs of the Armed Forces of Ukraine remain the top priority.

Three models are under discussion:

  1. Targeted Contract Approval: Similar to the current system, each export deal would require individual state approval. This model prioritizes tight control and oversight, ensuring exports do not undermine domestic defense capabilities.

  2. Quota-Based Exporting: Under this model, manufacturers could export up to 50% of the volume initially contracted for Ukraine’s own military. In return, a portion of the export revenue would be directed to the state budget and earmarked for the purchase of weapons and equipment for the AFU.

  3. Export Duty Mechanism: A more liberal option, this would allow free export of weapons and defense products, provided exporters pay a 20% duty. Funds from this duty would be channeled into a special defense fund used exclusively to finance procurement for the Ukrainian military.

The goal of these proposals is to strike a balance between enabling Ukrainian defense companies to expand into global markets and maintaining robust supplies for the nation’s armed forces. Revenues from exports could further fuel Ukraine’s defense resilience, not only through reinvestment in military procurement but also by stimulating innovation and competitiveness in the defense sector.

Earlier, European Commissioner for Defense and Space Andrius Kubilius stated that the European Union may double its military assistance to Ukraine if US President Donald Trump fails to persuade Russian leader Vladimir Putin to agree to a peace settlement.

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