“Is Arms Export Open? Unfortunately, No.” Hetmantsev on What Is Holding Back Defence City
At the beginning of 2026, a special regulatory regime for Ukrainian defense industry manufacturers, Defence City, officially came into force. The initiative was intended, among other things, to resolve the issue of exporting surplus weapons abroad. While the first companies have already become residents of Defence City, no actual arms exports have occurred to date. This assessment was shared by Danylo Hetmantsev, MP and head of the Verkhovna Rada’s Finance Committee.
Why hasn’t it worked?
- The laws that laid the foundation for Defence City were adopted in August 2025. As Hetmantsev explained, these laws eliminated the requirement for residents to obtain a separate authorization to export weapons.
- Under the legislation, the government was required to approve a simplified procedure for issuing arms export licenses. Such a procedure was adopted and came into force on January 8.
- However, according to Hetmantsev, the approved resolution simplifies and accelerates arms exports only within the framework of Ukraine’s international agreements — not for all export operations.
«In practice, we are talking only about long-term intergovernmental projects, not about real access for Ukrainian manufacturers to foreign markets,» he said.
- As Hetmantsev noted, the original plan was to reduce both the time required to obtain permits and the number of documents involved. Instead, the timeline for reviewing draft international agreements has not been defined and remains at the discretion of the State Export Control Service.
- Moreover, once an agreement is approved, any amendments must go through the approval process again. At the same time, the State Export Control Service is authorized to issue recommendations with undefined legal consequences.
«In the end, this is not a breakthrough, but a cautious bureaucratic compromise. It does not open markets, does not protect manufacturers, and does not allow the defense industry to fully realize its export potential,» Hetmantsev summarized.
It is worth noting that Hetmantsev has been lobbying for limited arms exports since May 2025. His proposal aimed to enable the monetization of Ukrainian weapons by unblocking exports and ensuring cash inflows into the state budget. According to Hetmantsev’s estimates, with access to foreign financing for production, Ukraine could manufacture weapons worth €25–30 billion per year, compared with about $9 billion today.
“Is Arms Export Open? Unfortunately, No.” Hetmantsev on What Is Holding Back Defence City
At the beginning of 2026, a special regulatory regime for Ukrainian defense industry manufacturers, Defence City, officially came into force. The initiative was intended, among other things, to resolve the issue of exporting surplus weapons abroad. While the first companies have already become residents of Defence City, no actual arms exports have occurred to date. This assessment was shared by Danylo Hetmantsev, MP and head of the Verkhovna Rada’s Finance Committee.
Why hasn’t it worked?
- The laws that laid the foundation for Defence City were adopted in August 2025. As Hetmantsev explained, these laws eliminated the requirement for residents to obtain a separate authorization to export weapons.
- Under the legislation, the government was required to approve a simplified procedure for issuing arms export licenses. Such a procedure was adopted and came into force on January 8.
- However, according to Hetmantsev, the approved resolution simplifies and accelerates arms exports only within the framework of Ukraine’s international agreements — not for all export operations.
«In practice, we are talking only about long-term intergovernmental projects, not about real access for Ukrainian manufacturers to foreign markets,» he said.
- As Hetmantsev noted, the original plan was to reduce both the time required to obtain permits and the number of documents involved. Instead, the timeline for reviewing draft international agreements has not been defined and remains at the discretion of the State Export Control Service.
- Moreover, once an agreement is approved, any amendments must go through the approval process again. At the same time, the State Export Control Service is authorized to issue recommendations with undefined legal consequences.
«In the end, this is not a breakthrough, but a cautious bureaucratic compromise. It does not open markets, does not protect manufacturers, and does not allow the defense industry to fully realize its export potential,» Hetmantsev summarized.
It is worth noting that Hetmantsev has been lobbying for limited arms exports since May 2025. His proposal aimed to enable the monetization of Ukrainian weapons by unblocking exports and ensuring cash inflows into the state budget. According to Hetmantsev’s estimates, with access to foreign financing for production, Ukraine could manufacture weapons worth €25–30 billion per year, compared with about $9 billion today.
