Ukraine is considering lifting its export ban to allow the sale of drones and secure funding for much-needed military equipment, according to newspaper reports.
Ukraine's ban on military drone exports has been in place since the start of Russia's full-scale invasion in February 2022.
However, according to the Financial Times, the government plans to sell surplus drones manufactured in the country to generate revenue for essential equipment purchases.
Allowing companies to export surplus production is widely seen as a strategy to attract investors and bring in badly needed cash.
Oleksandr Marikowski, head of the Ukrainian parliament's economic subcommittee, said that drone exports could generate up to $20 billion in revenue. Ukrainian officials have said that their country has the capacity to produce more weapons but is hamstrung by a lack of financial resources.
However, according to the Financial Times, the government plans to sell surplus drones manufactured in the country to generate revenue for essential equipment purchases.
Allowing companies to export surplus production is widely seen as a strategy to attract investors and bring in badly needed cash.
Oleksandr Marikowski, head of the Ukrainian parliament's economic subcommittee, said that drone exports could generate up to $20 billion in revenue. Ukrainian officials have said that their country has the capacity to produce more weapons but is hamstrung by a lack of financial resources.
Last month, speaking at a conference in Kyiv, Oleksandr Kamyshin, advisor to the Ukrainian president for strategic affairs, said: “Now, when we speak of local production it is not already a challenge to produce but a challenge to finance.”
According to the Financial Times, Ukrainian drone manufacturers, like Ukrspecsystems, are producing more drones than the Ukrainian army can afford to buy due to budget constraints–Ukraine’s defense budget for weapons this year is only $6 billion. This leaves the companies with either a surplus or underused production capacity, as they cannot export their products.
To address this, some manufacturers have moved production to Poland to bypass Ukraine’s export ban. They warn that without the ability to export, drone prices will increase, and Ukraine could suffer from knowledge drain and tax revenue losses.
According to the Financial Times, Ukrainian drone manufacturers, like Ukrspecsystems, are producing more drones than the Ukrainian army can afford to buy due to budget constraints–Ukraine’s defense budget for weapons this year is only $6 billion. This leaves the companies with either a surplus or underused production capacity, as they cannot export their products.
To address this, some manufacturers have moved production to Poland to bypass Ukraine’s export ban. They warn that without the ability to export, drone prices will increase, and Ukraine could suffer from knowledge drain and tax revenue losses.
