JVs and Fast Track: Why Tech Transfer Won't Take 30 Days

Cabinet of Ministers Resolution No. 875 of July 1, 2026 (effective as of July 8), introduced an accelerated 'Fast Track' procedure for the export of military and dual-use goods, shortening approval times to 30 calendar days by bypassing the standard, long-term review by the Interdepartmental Commission. For joint ventures (JVs), this presents both an opportunity and a significant risk, as not all operations qualify for this simplified path.

The Three Fast Track Filters: WHO, WHERE, WHAT

• WHO: The exporter must be the direct manufacturer or a registered executor of state defence contracts.
• WHERE: Delivery is permitted exclusively to countries that have signed bilateral 'Drone Deal' framework agreements (as of July 2026, there are 9 such agreements, including with Latvia, Lithuania, Estonia, Denmark, the Netherlands, Qatar, the UAE, Saudi Arabia, and Azerbaijan).
• WHAT: The products must not be included in the classified stop-list of critical goods, which is updated quarterly by the Ministry of Defence.

The Primary Red Line: Prohibition on Tech Alienation

The most critical limitation for JVs is that the transfer, joint use, or alienation of technologies and intellectual property (IP) rights to a foreign JV or a foreign parent company cannot be conducted via Fast Track. Any alienation of technology must be directed to the Interdepartmental Commission for general review. The simplified Fast Track only permits technology transfer for usage purposes, without the alienation of property rights.

Mandatory Advance Fees

Obtaining a Fast Track permit requires payment of a fee to the state budget, which must be submitted as an advance payment along with the documentation provided to the State Export Control Service (SSECU):

• 20% of the contract value for the export of finished products or technologies.
• 30% of the contract value for the export of individual components and assemblies.
• 20% of the estimated value of the package for technology transfers to third countries.

Re-export Rules and Licensing Payments

If a foreign JV intends to supply products created based on Ukrainian developments to third countries, strict constraints apply:

• Each operation requires mandatory written authorization from Ukraine.
• A fee of 20% of the value of each transaction must be paid to the Ukrainian state budget for the re-export permit.
• Unauthorized re-export without prior written consent is direct grounds for immediate cancellation of the export permit.

State Guarantees and Reverse Modernization

Imports within the scope of a JV are possible only if official Government Guarantees from the recipient country are provided. Furthermore, a requirement for 'reverse modernization' applies: if a foreign JV upgrades a transferred Ukrainian technology, it is obligated to provide all updated technical documentation and source code to Ukraine free of charge.

Fast Track is designed for the speed of selling finished products, not for building a shared technological base. The moment IP alienation to a JV is involved, the process moves to the Interdepartmental Commission and falls outside the 30-day timeline.

Strategic Implications for JV Structuring

Failure to structure a JV model correctly can lead to multi-month reviews by the Interdepartmental Commission or, worse, permit revocation due to unauthorized re-export. Proper transaction structuring—focusing on usage rights rather than alienation, accurate fee calculations, clear licensing clauses, and securing Government Guarantees—is the difference between a functional export channel and a frozen project. Global Miltech Legal structures JV agreements while accounting for all Fast Track limitations—from transaction classification to the preparation of state guarantees. Contact us today for a free initial case assessment.