Ukraine Opens Defense Exports, Routing 20% to 30% of Revenue Into War Fund
Updated
Updated · Kyiv Independent · Jul 23
Ukraine Opens Defense Exports, Routing 20% to 30% of Revenue Into War Fund
3 articles · Updated · Kyiv Independent · Jul 23
Summary
Kyiv has rolled out a controlled defense-export framework that allows bilateral “Drone Deals” with European and Middle Eastern partners, with additional agreements in the works including with the United States.
The system is designed to replace opaque wartime licensing with predictable rules: companies must fulfill domestic military orders first, sensitive categories remain restricted, and part of each export contract goes to a dedicated state defense fund.
20% of finished-product revenue and 30% of component sales will be diverted to that fund as Ukraine tries to keep factories running, attract investment and avoid excess production capacity turning idle.
Ukraine’s defense sector now spans about 900 companies and 300,000 workers, with capacity rising from $1 billion in 2022 to more than $55 billion, yet domestic production is estimated at only about 40% of potential.
Foreign demand is already strong—90% of Tech Force members got cooperation requests from foreign governments in Q1 2026—making exports central to preserving Ukraine’s rapid battlefield-driven innovation cycle.