Ukraine is getting closer to lifting the ban on arms exports to support the defense industry.

Ukraine’s military urgently needs more surveillance, strike, and combat drones, but due to limited government resources drone manufacturers are looking for opportunities to export their products abroad to obtain funds to expand their production. According to Oleksandr Marikovsky, chairman of the parliament’s economic subcommittee, exporting drones could bring Ukraine up to $20B.

After the start of the full-scale war with Russia in 2022, Kyiv imposed a ban on exporting military products in order to be able to provide its arme forces with all necessary resources. However, the government currently lacks sufficient funds to purchase all the available drones and fund further research, so permitting exports is seen as a way to attract investment, which the manufacturers agree with.

Some Ukrainian manufacturers, such as Ukrspecsystems, have already started producing drones abroad to circumvent export restrictions, but there are fears that this could lead to a brain drain and reduced tax revenues, so a review of the ban is critical.