Financial and IP Risks of Arms Export under Resolution No. 875 (2026 Update)

The implementation of Cabinet of Ministers Resolution No. 875 remains a cornerstone of the Ukrainian defence industry's international strategy. While the simplification of procedures and the reduction of application review periods to 30 days for Drone Deal participant countries is a significant milestone, manufacturers must recognize that this export liberalization is accompanied by heightened oversight of intellectual property (IP) and evolving financial obligations.

The Financial Export Model: New Legislative Developments

A critical update as of October 2026 is the legislative push to formalize the use of export permit fees. The Verkhovna Rada has supported Draft Law No. 15400 in its first reading, which mandates that 100% of revenues collected from defense export permits be allocated to the Armed Forces of Ukraine—split equally between equipment procurement and service member remuneration. Manufacturers must integrate these 20% (finished goods) and 30% (components) fees into their financial models, treating them as non-negotiable project costs that directly support national defense.

IP Protection and Operational Realities

The state requires exporters to provide ironclad guarantees that transferred technologies will not be alienated or modified without authorization. This mandates that every export contract must include a robust IP architecture. Manufacturers must move beyond simple product sales to provide legal oversight of technology usage, including an explicit prohibition on re-export without State Service for Export Control (SSECU) consent. Despite the framework being in force, industry feedback indicates that operationalizing these permits requires meticulous documentation to avoid delays.

• Conduct a comprehensive audit of IP rights for technologies prior to filing an application with the SSECU.
• Integrate clauses into international trade contracts requiring mandatory notification of any product modifications.
• Formalize permit payment conditions as a distinct budget item, accounting for the 20%/30% fee structure.
• Verify product compliance with Ministry of Defence codification criteria to ensure eligibility for simplified procedures.
• Ensure domestic defense procurement needs are addressed to prevent permit suspension.

Exporting under Resolution No. 875 is not merely a commercial sale; it is a strategic partnership where the Ukrainian manufacturer acts as the guarantor of technology security at the international level.

The Global Miltech Legal team specializes in providing comprehensive legal support for defence companies regarding export compliance. We assist in structuring export contracts, calculating financial obligations, and securing your intellectual property rights. Contact us today for a free initial case assessment to effectively navigate and mitigate your regulatory risks.