Ukraine simplifies military exports mechanism

Ukraine simplifies military exports mechanism

The Ukrainian Cabinet has simplified the mechanism for military manufacturers to sell on the international market.

“The government at a meeting on April 8 decided to abolish the obligations of economic entities that are authorized to export military goods, conduct sales marketing and set external prices for military goods in agreement with the Ukroboronprom State Concern,” according to a government statement.

It notes that now the companies that have been authorized to export military products will be granted the right to enter foreign markets on their own, without having to agree on prices and selling policy with the government.

The move aims to de-monopolize the processes of external pricing, remove barriers to exports and increase the competitiveness of domestic military products in the international market.

The defence industry of Ukraine is a strategically important sector and a large employer in Ukraine.

After working for several decades mostly for the arms export markets, it has moved significantly into increased Ukrainian military procurement since the annexation of Crimea by Russia and the battle for Donbass.

Ukraine is also a significant player in the global arms market. Ukraine’s export-oriented arms industry had reached the status of world’s 4th largest arms exporter in 2012.

Since the begin of domestic clashes, Ukraine’s military industry has focused more on its internal arms market and as a result slipped to the 9th spot among top global arms exporters by 2015, 11th by 2018 and the 12th by 2019.

Neal Path

Neal Path is a reporter covering international affairs and defense news. He leads a team of specialist technical journalists and defense forecasting analysts, working across a range of online products. Neal Path is a defense technology specialist and has written widely on most areas of defense technology, but his particular areas of interest include missile defense, precision weapons, naval warfare, sensor capabilities and military operations.