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Until the middle of 2026 there was no ordinary way for an allied government to buy a Ukrainian drone. The systems existed, they worked, and they were cheaper than anything a Western line could deliver on the same timeline, but wartime export controls kept them inside the country. On 1 July 2026 the Cabinet of Ministers approved Resolution No. 875 and that changed: there is now a written procedure, a named permitting authority, a published deadline and a list of countries eligible to buy. This is what the procedure asks of a buyer, in the order it asks it.
Why a buyer looks at Ukraine at all
Three things put Ukrainian systems on a procurement shortlist, and only one of them is price.
The first is evidence. A Ukrainian interceptor, ground robot or electronic-warfare set has been used against an adversary that changes its countermeasures in weeks and has spent four years doing so. That is a category of proof a proving ground cannot manufacture, and it is the argument we set out in full in what battlefield testing actually proves. For a procurement office, it collapses the distance between a specification and a fielded capability.
The second is volume. Ukraine's defense industry had roughly $35 billion of production capacity in 2025 and is estimated to reach around $55 billion in 2026, while the Ukrainian state has been able to contract only about a third of it. That surplus is the reason exports opened. It also means a buyer is negotiating with an industry that has spare capacity and a commercial reason to want the order.
The third is cost. KSE Institute puts Ukrainian production at 30% to 50% below Western European equivalents, on an engineering base that costs three to five times less. On a cost-per-effect basis, against the timelines allied industry is currently quoting, the gap is wide enough to change what a given budget line can buy this year.
What opened on 1 July 2026
Resolution No. 875, titled “Some issues of international transfers of goods during the period of the legal regime of martial law in Ukraine,” is the whole basis for a foreign purchase. It does not liberalise arms exports in general. It creates a defined, permitted channel through which specified goods can go to specified countries under specified conditions, and it puts a clock on the paperwork.
- Controlled export, in this mechanism
- The transfer abroad of Ukrainian military or dual-use goods and technologies that have been adopted for service or codified as an item of supply, to a state on the Ministry of Foreign Affairs list, under a permit issued by the State Export Control Service, on condition that the needs of Ukraine's Defense Forces are met first.
| Legal basis | Cabinet of Ministers Resolution No. 875, adopted 1 July 2026. In force for the period of martial law. |
|---|---|
| Permitting authority | The State Export Control Service of Ukraine (SSECU). Maximum 30 calendar days from submission of a complete set of documents, with approvals run in parallel rather than in sequence. |
| What can be sold | Military and dual-use goods and technologies adopted for service or codified by the Ministry of Defence as an item of supply. Items on the critical-goods list are held back. |
| Who can buy | States on the Ministry of Foreign Affairs partner list, updated quarterly. States with a Drone Deal agreement are on it by construction. |
| Contract floor | UAH 15 million, about $335,000, for finished products and technologies. Components and parts are exempt from the threshold. |
| State contribution | 20% of value on finished goods, technology transfers and re-exports of goods made using transferred technology; 30% on components. Paid into a special state fund for the defense-industrial complex. |
| Simplified route | For Drone Deal partner states, the Interdepartmental Commission stage is skipped. Critical goods, internationally restricted items — missile technology in particular — and cases flagged by the security services still go through additional review. |
| Domestic priority | A permit can be refused where Ukraine's Defense Forces have a live requirement for the item. This is a standing condition, not a formality. |
Two provisions are easy to skim past and expensive to discover late. Intellectual property does not transfer with the goods: the Ukrainian manufacturer keeps it, and a technology transfer is licensed rather than sold outright. And onward movement is controlled — resale or transfer of the product to a third country requires the written consent of the Ukrainian side. If your programme anticipates re-export, gifting to a partner force or transfer within a coalition, that has to be negotiated into the contract at the start.
Who is allowed to buy
The buyer's first question is not commercial. Before a requirement is worth writing down, your state has to be on the Ministry of Foreign Affairs list, and the surest way onto it is an intergovernmental Drone Deal agreement.
The Drone Deal is broader than its name suggests. Each agreement runs for ten years and covers the export of Ukrainian defense production and technology, joint development, localisation of production on the partner's territory, and structured transfer of operational experience. Buying finished systems is one lane inside a wider industrial relationship, which is why the deals are signed at head of government level.
| Agreements signed | Nine as of 8 July 2026. Saudi Arabia, the United Arab Emirates, Qatar, Azerbaijan, Latvia and Lithuania signed first; Estonia, the Netherlands and Denmark signed on 7 July 2026 at the NATO summit in Ankara. |
|---|---|
| In preparation | More than 20 further states, according to NSDC Secretary Rustem Umerov. Canada and Finland were in discussion at the Ankara summit. |
| Wider participation | Janes reported 27 states taking part in the initiative as of 18 June 2026 — 15 NATO members and 12 non-NATO — a figure that counts engagement broadly, ahead of signature. |
| Term | Ten years per agreement, covering export, joint production and defense cooperation. |
| United States | A statement of intent on drone cooperation, establishing a first formal framework, rather than a concluded Drone Deal agreement. |
If your country is not yet a signatory, that is a diplomatic track running in parallel with your procurement track, and it is worth starting both at once. The commercial groundwork — requirement, supplier shortlist, quality expectations — is not wasted while the intergovernmental agreement is negotiated, and buyers who arrive with the groundwork done contract materially faster once the door opens.
Define the requirement, not the product
The most common failure in a first Ukrainian procurement is arriving with a model name. Buyers read an article about a particular interceptor, ask for that interceptor, and discover that the maker is contracted out for eleven months, or that the item is on the critical list, or that a competitor two clusters over builds something closer to what the requirement actually described.
A requirement that a Ukrainian supply base can answer specifies the effect, the operating environment, the volume and the timeline. Ukraine's industry is unusually good at meeting a described effect with an existing product and adapting it, because that is exactly what it does for its own forces every week. It is much less good at holding a fixed catalogue, because catalogues do not survive a threat picture that turns over in weeks.
Before the first supplier conversation, write down:
- The effect. What has to happen at the far end — detect, intercept, jam, deliver, resupply, observe — and against what threat.
- The environment. Contested electromagnetic spectrum or permissive, terrain, climate, range, endurance, whether autonomy has to survive loss of link.
- The volume and the cadence. A one-off evaluation batch, a standing monthly draw or a multi-year off-take. This determines which suppliers can even bid.
- The acceptance standard. What your own acceptance test will be, and which quality certification your procurement rules require against it.
- The end-use and end-user. Named, documented, and consistent with what you will later put on the certificate. This is not paperwork you retrofit.
Find and vet the supplier
There are roughly a thousand manufacturers in Ukraine and no public register of which ones can actually deliver at volume to a foreign buyer. The distance between a company that makes an excellent product and a company that can hold a delivery schedule under an export permit is the entire difference between a successful procurement and a stalled one.
Five checks separate the two, and each is answerable before you contract:
- 1Combat validation, documented. Not a promotional video. Unit feedback, failure data, iteration history, and what changed after contact. A supplier that cannot describe its own failure modes has not been in the field long enough.
- 2Adoption or codification status. The mechanism applies to goods adopted for service or codified as an item of supply. If the product does not have that status, it does not have an export route, however good it is.
- 3Quality system. ISO 9001 as a floor and AQAP 2110 where your own procurement rules reference it. We set out what each one actually certifies in the certification map; for a buyer, they are the difference between an acceptance test you can sign against and a subjective judgement.
- 4Capacity and delivery record. Real monthly output, current contracted load, supply chain for the long-lead components, and what happens to your delivery if a domestic order is prioritised over it.
- 5Ownership and sanctions. Beneficial ownership traced through, no Russian or Belarusian exposure anywhere in the chain, and a compliance record that will survive your own audit rather than merely satisfy the seller.
Run the export permit
The permit is the Ukrainian manufacturer's obligation, not the buyer's. What the buyer controls is how fast the manufacturer can complete it, because the 30-day clock only starts when the document set is complete, and most of the documents that make it complete come from you.
- 1Eligibility confirmed. The buyer state appears on the Ministry of Foreign Affairs list. Where a Drone Deal agreement is in force, the transaction takes the simplified route and does not go to the Interdepartmental Commission.
- 2Product classified.The item is checked against the military and dual-use control lists, against the critical-goods list, and against any international restriction. Missile technology and internationally restricted items keep the additional review regardless of the buyer's status.
- 3End-use documentation issued.The end-user certificate and supporting undertakings come from the buyer government. This is usually the slowest step, and it is entirely within the buyer's control.
- 4Application filed. The manufacturer applies to the State Export Control Service with the contract, the classification and the end-use pack. The 30-day maximum runs from the complete submission.
- 5Domestic-priority check. The Defense Forces requirement for the item is assessed. A live domestic need is grounds for refusal.
- 6Permit issued, contract in force. Delivery, acceptance and payment then run on the commercial terms, with the state contribution already reflected in the price.
Thirty days is the statutory ceiling on the permitting decision, not the length of the procurement. Budget realistically for the requirement definition, the supplier shortlist and the negotiation around it, and treat the permit as the one part of the timeline that now has a published bound.
Contract, quality, payment and logistics
A cross-border defense off-take is where a procurement is either made durable or quietly left fragile. Five clauses do most of the work.
| Acceptance | The test, the place it is run, who witnesses it, and what happens on a failed lot. Acceptance in Ukraine before shipment and acceptance on arrival are different risks with different remedies. |
|---|---|
| Quality | The certification the supplier holds, the standard the goods are built to, and the inspection right you retain during production rather than only at delivery. |
| Delivery and priority | Schedule, Incoterms, the export route out of Ukraine, and an explicit treatment of what a domestic-priority claim does to your slot. |
| Payment | Currency, milestones, and any advance against the manufacturer's working capital. The state contribution of 20% or 30% is inside the price; know which side of the number you are negotiating. |
| IP and onward transfer | The manufacturer retains intellectual property. Re-export or transfer to a third country needs written Ukrainian consent, so any coalition or partner-force distribution has to be agreed up front. |
Support after delivery deserves the same attention as the delivery itself. These are systems that iterate on a monthly cycle, which is an advantage while you have access to the iteration and a liability once you do not. Spares, firmware, training and the terms of a mid-life update are worth contracting alongside the units. The reverse direction — how money reaches a manufacturer supplying Ukraine — is a separate map, and we set it out in how a foreign supplier gets paid in Ukraine.
What the mechanism will not do for you
Being clear about the boundary is what keeps a first procurement from turning into an escalation between two governments.
- It does not replace your own import controls. Your national licensing, your classification of the incoming item and your own end-use rules apply unchanged.
- It does not open everything. The critical-goods list exists precisely to hold back what Ukraine will not export at any price, and it is reviewed as the war changes.
- It does not guarantee a permit. Domestic need is a live ground for refusal, and the assessment happens on your application, not in the abstract.
- It does not transfer the technology. Buying units and licensing the capability to build them are separate transactions; the second one is what the capability-transfer route exists for.
- It does not make you an owner. If the goal is the company rather than its output, that is an acquisition, and the six routes into the market are compared in the router.
What an operator does that a broker does not
The mechanism is public and the suppliers exist, so the question a buyer should ask is what part of the work actually needs someone on the ground. Three parts do.
Matching a requirement to a supply base that publishes no catalogue is the first. It is done by knowing which manufacturers are genuinely delivering this quarter, which have capacity that is not already committed, and which have the adoption or codification status that makes an export route possible at all. That knowledge has a short shelf life and is not obtainable from outside.
Verification is the second. Combat evidence, quality certification, ownership and capacity are all checkable, and they are checkable properly only by people who can visit a line, read Ukrainian registry data and ask a brigade what it thinks of the product. Wiseboard runs that vetting before a supplier is ever named to a buyer.
Running the transaction is the third — the permit pack assembled in parallel rather than in sequence, the end-use documentation aligned between two governments, and a contract that survives a domestic-priority claim. Every enquiry is handled under NDA, no supplier is named outside it, and nothing that could expose an end-user or a delivery is published. The procurement page sets out how the engagement runs and what a first call covers.
Frequent questions
Wiseboard Defense analysis of primary and open sources. This article is informational and not legal or export-control advice. Ukraine's export mechanism, the partner-country list and the critical-goods list are the latest public data as of July 2026 and change — verify against the primary sources above and against your own national import and licensing rules before committing to a transaction.
- Resolution of the Cabinet of Ministers of Ukraine No. 875 of 1 July 2026, “Some issues of international transfers of goods during the period of the legal regime of martial law in Ukraine” — zakon.rada.gov.ua
- Ukraine introduces a special mechanism for arms exports — Sayenko Kharenko
- Ukraine approves mechanism for partner countries to procure Ukrainian weapons — Janes
- Fedorov: Ukraine opens the arms-export mechanism to partner countries (1 July 2026) — LB.ua
- Ukraine opens wartime arms exports as production outpaces domestic demand — The Defense Post
- Ukraine signs drone cooperation deals with three NATO countries (Estonia, the Netherlands, Denmark; 7 July 2026) — The Kyiv Independent
- Ukraine has signed six Drone Deal agreements, each for ten years, with over 20 more countries ready to join — Umerov (UNN)
- The Ukrainian defense technology market: opportunities for investors (production cost basis) — KSE Institute
Published: 29 July 2026
