Ukraine could export military goods and services worth several billion dollars this year after authorizing its first sales abroad during the war. This was stated in an interview with "Reuters" David Aloyan, Deputy Secretary of the National Security and Defense Council of Kyiv.
The country is also considering introducing a tax on these exports.
Earlier this month, the state commission dealing with wartime related licenses approved the majority of 40 applications from defense sector manufacturers to export materials and services, Aloyan said.
Ukraine has suspended arms exports since the invasion of Russian forces in February 2022 and relies heavily on arms supplies from partners to defend itself against Moscow.
At the same time, Kyiv has poured resources into developing its arms industry, particularly drones and missiles. Drawing on its vast battlefield experience, Ukraine has experienced a defense technology boom in recent years.
When asked about this year's export potential, Aloyan said: "Taking into account finished products, spare parts, components and services that can be provided, it amounts to several billion dollars".
Overall, the potential is "significantly higher" of exports before the war, he reported.
Aloyan, who is a member of the export-authorizing commission, however, played down talk of an immediate export boom for arms manufacturers and developers.
Ukraine's military needs must come first as Russian troops advance in the east of the country and air strikes hit towns and villages far from the front line, he stressed.
Ukraine's allies have expressed interest in obtaining its cutting-edge defense technology, Aloyan said, naming Germany, Britain, the United States, Scandinavian countries, three Middle Eastern countries and at least one Asian country as among those most interested.
One of the Middle Eastern countries that has a long history of arms trade with Ukraine, is exploring opportunities in the field of drones and heavy vehicles, Aloyan said, but declined to reveal which country.
Priority will be given to exports to countries that are Kiev's strongest supporters in the war, he said.
In addition, Kiev is seeking to prioritize joint ventures and other forms of cooperation with foreign countries to attract financial resources, create new arms supply chains to the front line and have access to new technologies. This is more important than simply exporting ready-to-use products, Aloyan stressed.
Defense manufacturers are pressuring Ukraine to resume exports, arguing that otherwise it risks losing opportunities in the global arms market. Some have already created subsidiaries to operate abroad.
"There is no desire or goal to lock all manufacturers here and simply keep ours. There is an approach and it is focused on creating a system that prioritizes the front line and national interests," Aloyan pointed out. "And commercial interests come after".
Ukraine is also considering introducing an export tax on defense manufacturers, he added.
Although a final decision has not yet been made, Aloyan believes that this measure would justify the country's decision to resume exports, as Kiev could use the proceeds to spend on its own underfunded military needs.
Among the applications approved by the commission, none involve the export of ready-to-use weapons, and the majority are aimed at reimporting weapons to Ukraine for use on the front line, he explained.
Some, however, are related to equipment for the Ukrainian-American FrankenSAM program, which is developing surface-to-air missile defense systems by combining Soviet systems owned by Ukraine with Western missiles.