Ukraine’s Build with Ukraine has 200-plus foreign cooperation bids pending decision. Its arms industry, representing 400-plus firms, wants to help fix mechanism

Ukraine’s Council of Defense Industry, representing over 400 firms, is urging the government to address two significant hurdles in its efforts to export and co-produce weapons abroad. The primary issues involve a costly export-permit fee and a stalled joint-production program. The export fee, as stipulated in Resolution 875, imposes a 20-30 percent charge on export permits, making Ukrainian goods less competitive in the market.

Only around 10 small export contracts have been signed under Resolution 875 since its implementation in July, with no permits issued under the new rules.

Build with Ukraine, a separate initiative, aims to help Ukrainian producers export technology and establish joint production abroad, primarily targeting EU markets. This program allows partners to fund weapons production within Ukraine, facilitating the delivery of arms to EU markets while providing necessary financing and infrastructure. Discussions are currently underway with Denmark, Norway, and Germany regarding participation in the program.

President Zelenskyy has set a target of raising $43 billion for Ukraine's defense industry in 2025, and proposed that each partner state spend 0.25 percent of its GDP on the initiative. He also emphasized that no Ukrainian technology will be supplied to countries with ties to Russia. The Council of Defense Industry, comprising more than 360 manufacturers, 28 drone-pilot schools, and 20 defense venture funds, is prepared to assist in refining the mechanism for exporting arms and co-production.