Ukraine prepares to lift arms export ban: FT

Ukraine is getting closer to lifting the ban on the export of military drones, which could be a key step to increase production and counter Russian aggression. As writes The Financial Times, government and industry representatives consider this step necessary to meet the needs of the frontline and attract financial resources.
The demand for drones for reconnaissance and strike operations is growing, but due to the limited possibilities of the state budget, Ukrainian drone manufacturers are looking for ways to export their products. This will make it possible to obtain additional funds for the expansion of production capacities.
Oleksandr Marikovsky, head of the economic subcommittee of the Verkhovna Rada, said that the export of drones could bring Ukraine up to $20 billion, which is critical for economic stability and meeting military needs.
After the start of a full-scale war with Russia in 2022, Ukraine imposed a ban on the export of military products to provide the army with the necessary resources. However, the government now does not have enough funds to purchase all the drones available, so allowing exports is seen as a way to attract investment to develop the industry.
Against the background of increased weapons production in Russia, Ukrainian experts estimate that the ratio in drones between the Russian Federation and Ukraine is 5-10:1. Dmytro Khasapov, head of Ukrspetssistem, emphasizes that there is a “colossal shortage of drones” in the army, and state contracts do not cover production needs. Of this year’s military budget of 6 billion dollars, about a third is directed to drones, which is not enough to meet the needs of the Armed Forces of Ukraine.
Some Ukrainian manufacturers, such as Ukrspecsystems, have already started manufacturing drones abroad, particularly in Poland, to circumvent export restrictions. However, according to Marikovsky, this leads to an outflow of intellectual resources and a decrease in tax revenues, which makes the revision of the export ban critically important.
Other companies, such as Roboneers, also face difficulties due to insufficient government funding for research and development, having to cover testing costs themselves. Manufacturers hope that the lifting of the ban will open opportunities to attract Western investors.
In addition to financial problems, industry representatives emphasize the importance of creating standards and a long-term development strategy. Artem Kolesnyk, technical director of Reactive Drone, noted that programs for training engineers and strategic planning for five to ten years ahead are needed to avoid the threat of industry decline: