A working group of parliament members and defense industry representatives will develop a concept for the controlled export of military products during the war. “Now the issue of scaling up production can only compete with the issue of its financing,” the economic committee of the Verkhovna Rada noted.
The National Association of Defense Industry Enterprises of Ukraine states that exporting military products can bring the state up to $2B in additional tax revenue in a year and a half. The Ukrainian defense industry’s production capacity is up to $20B a year, while the state budget can provide only $6B to purchase weapons and ammunition.
Due to a lack of funding, defense industry enterprises risk going bankrupt, as all their working capital is invested in developing new technologies and expanding production. The opening of exports can be a strategic step to strengthen the country’s economy and develop the defense industry. Additional taxes will be directed to purchasing weapons and ammunition for the military.