Sergiy Prytula Calls for Activation of Ukrainian Military Technology Exports

Prytula highlighted the potential opportunity for Ukrainian companies if the export permit for military goods and technologies, announced months ago, is implemented beyond mere declarations and into concrete actions. The recent news of Germany's significant investment in military technology underscores the urgency for Ukraine to capitalize on its own capabilities.

Last year, Ukrainian society faced a communication challenge in explaining how the country could continue trading with international partners amid ongoing conflict. As the public actively raised funds for drones like the 'Mavic', the realization of the need to open exports became increasingly relevant. This initiative not only promises additional financial resources for the economy but also offers a chance to scale domestic production, create new jobs, and generate tax revenues. Furthermore, the opening of exports would facilitate the integration of Ukraine's defense industry with NATO armies, which holds significant geopolitical importance. This integration could, in turn, provide additional resources for the frontline.

Prytula notes that there are numerous reasons why the export of Ukrainian military technologies should be intensified. However, in discussions with many Ukrainian manufacturers, he has heard that real actions beyond announcements of intent are lacking. There is a consensus that meeting the needs of the Ukrainian military is an undeniable priority. The resilience of the Armed Forces of Ukraine is crucial for the survival of the country and the companies supplying various drone systems, ranging from FPV to UAVs, from reconnaissance drones to maritime drones.

A significant barrier to export is the interagency commission on military-technical cooperation and export control. This body, which includes representatives from nearly twenty institutions such as the Security Service of Ukraine (SBU), the Foreign Intelligence Service (SZR), the National Security and Defense Council (RNBO), and the Main Intelligence Directorate (HUR), is too cumbersome for effective dialogue with private military goods and technology manufacturers. Direct contracts with private companies remain elusive.

While the regulation of exports from state defense enterprises has its own issues, it is less complex. State-owned enterprises have a certain tradition and experience, but their products, to put it mildly, do not enjoy high demand, except for certain types of nomenclature.

Sergiy Rakhmanin emphasizes that the classic problem in the relationship between the state and the private sector lies in excessive regulation, which hinders rapid responses to market needs. In a world that is changing rapidly, Ukraine must be prepared for the challenges arising in the arms market. For instance, Russia has suffered significant losses, and the rhetoric from the U.S. president regarding Saudi Arabia could impact the situation in Ukraine.

EU countries can quickly ramp up production, such as FPV drones and bombers, but without a proper ecosystem, this will be challenging. Services, training and maintenance centers, and instructors capable of teaching not only tactics but also interaction with electronic warfare systems are critically important. Ukraine has the potential not only to sell goods and technologies but also to provide practical expertise, which could yield substantial financial benefits.

These funds could be used to purchase items that are not produced in Ukraine, which in turn could spur the development of military technology, especially in research and development. This, in turn, would bring bonuses not only in defense but also in civilian life.

The country needs to scale its defense capabilities, but currently faces serious financial challenges. For example, €90 billion is blocked by Hungary, and IMF funds are also frozen. Exporting those goods that can be sold without jeopardizing the frontline could significantly alleviate these issues. While this will not happen overnight, it could become an important resource for Ukraine in the long run. It is essential to enter markets this year, as by 2027, we may find ourselves in a situation where we are captivated by our own drones and technologies. The world is learning quickly, and Ukraine needs to establish itself in the market while we still have the advantage.

This text has been published with the author's permission.