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The first mechanism for arms export: transformation of the Ukrainian defense industry from prohibition to joint contracts with Drone Deal

Ukraine has approved the first mechanism for the export of weapons, targeted at partner countries of the Drone Deal program. This step will enable foreign partners to purchase Ukrainian defense technologies through direct cooperation with Ukrainian manufacturers.

On July 1, 2026, the Ukrainian government approved the arms export mechanism, aimed at establishing uniform rules for the state, manufacturers, and partners. According to Defense Minister Mykhailo Fedorov, this initiative will help Ukraine regain its role in the global market after a significant increase in arms imports since 2022.

Until 2026, Ukraine was a key arms importer worldwide, receiving a substantial portion of aid from Western countries following the full-scale Russian invasion in 2022. However, thanks to new mechanisms, the country is once again moving towards export, leveraging demand for its drones, FPV drones, and other technological innovations.

The export of weapons and defense technologies will be carried out under Drone Deal agreements, covering around 20 countries, including in the Middle East, South Caucasus regions, and Europe. These agreements will maximize export potential and provide additional revenues to the state budget of Ukraine. Besides financial benefits, this can contribute to the development of the Ukrainian defense industry and enhance its resilience.

Currently, key partners of Ukraine in 2026 include countries such as the USA, Germany, Denmark, and the United Kingdom. The revived exports should also reduce production costs on Ukraine’s domestic market and stimulate the scaling of production capacities and the development of new technologies.

Here’s how the key development indicators of the Ukrainian defense-industrial complex look today:

Direction Production Capacity Number of Companies Contribution to Enemy Losses
FPV Drones 8 million units per year Over 160 Over 60%
Interceptor Drones 100,000 units Over 20
Deep Strike Drones $25 billion Each invested dollar causes $10 in damages
Maritime Drones 25 Russian ships destroyed

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