Parliament backs Ministry of Defence initiative: 100% of defense export permit fees to be allocated for the needs of the Armed Forces of Ukraine
The Verkhovna Rada of Ukraine has adopted Draft Law No. 15400 in its first reading. The legislation provides for the allocation of fees for processing and issuing documents under the state export control system to support the Armed Forces of Ukraine.
Specifically, this means additional funding for defense procurement and service members' remuneration.
What the new changes to the defense export mechanism entail
If adopted in its entirety, the legislation will require crediting 100% of fees collected for processing and issuing export control documents for military and dual-use goods to the state budget's special fund and subsequently allocating them to the Ministry of Defence of Ukraine.
Developing the export potential of Ukraine’s defense industry and supporting the Defence Forces are interconnected priorities. This draft law will create additional opportunities for the growth of domestic defense production while enabling revenues from defense export permit fees to be directed toward the needs of our military.
The initiative, developed with the involvement of the Ministry of Defence of Ukraine, proposes corresponding amendments to the Budget Code of Ukraine.
How permit fee revenues will be allocated
Under the draft law, revenues collected from the processing of defense export documentation will be distributed equally:
- 50% will be allocated to the procurement, modernization and repair of weapons and military equipment.
- 50% will be allocated to service remuneration for service members of the Armed Forces of Ukraine.
The draft law builds on Resolution No. 875, adopted by the Cabinet of Ministers of Ukraine on 1 July 2026, which introduced a mechanism for the controlled export of Ukrainian weapons and defense technologies, while maintaining the supply needs of Ukraine’s Defence Forces as an overriding priority.
The resolution sets export permit fees at 20% of the value of finished products and 30% of the value of components.
