Supplying Defence Products in Ukraine
Under Law No. 808-IX “On Defence Procurement”, foreign and Ukrainian companies of all ownership forms may participate in defence procurement in Ukraine on equal legal terms. In practice, the route depends on what is supplied: non-secret, non-weapons items follow the applicable electronic procedure; weapons, military equipment and ammunition are procured through non-public procedures in which the state purchaser determines supplier selection; and classified items require Registry registration and security clearances. All routes require sanctions, UBO-transparency and anti-corruption checks, and no single path applies to every defence supplier.
Ukrainian defence procurement is regulated separately from general public procurement. Law No. 808-IX “On Defence Procurement” establishes the main framework, while wartime procedures and individual procurement routes depend on the current implementing rules.
This article is intended for foreign manufacturers, suppliers, investors, management boards, and legal or compliance teams assessing entry into Ukraine’s defence supply chain. The applicable route depends on the product, the state customer, the level of confidentiality, and the current wartime rules.
1. Defence Procurement Participants
2. Defence Products and Dual-Use Goods
3. Participant Exclusion Grounds
4. Defence Procurement Procedures in Ukraine
5. Electronic Procurement and Framework Agreements
6. Non-Public Procurement of Weapons and Military Equipment
7. Closed Procurement and State Secrets
8. Direct Contracts during Martial Law
9. Participation Models for Foreign Suppliers
10. Export Control and Import of Defence Products
11. Licensing of Defence-Related Activities
12. Quality, Codification and State Acceptance
13. Defence City and Production Localisation
Frequently Asked Questions
How DLF Can Help
1. Defence Procurement Participants
The defence procurement law allows domestic and foreign participants of different ownership forms to participate on equal legal terms. There is no statutory requirement to be a Ukrainian company — the legal entitlement is clear.
But equal legal entitlement is not the same as equal practical access to every procurement route. For competitive e-system procedures — the public routes — equal participation is straightforward for eligible companies. For non-public procurement of weapons and military equipment, where the state purchaser determines the supplier-selection process, practical access depends on that purchaser’s own criteria and engagement process, which are not publicly standardised. Sections 6 and 7 address this distinction in detail.
Participation may be excluded, in particular, where:
- sanctions imposed on the participant or its ultimate beneficial owner (UBO);
- a prohibited connection with Russia, Belarus or Iran at the level of registration, control, UBO or origin of goods;
- entries in registers that constitute a rejection ground under the current rules;
- failure to satisfy qualification requirements set by the state purchaser regarding legal status, financial capacity, technical capability, quality or prior contract performance;
- an undisclosed or opaque ownership structure.
Related article: Ukraine’s Security and Defence Sector for Investors
2. Defence Products and Dual-Use Goods
Law No. 808-IX “On Defence Procurement” governs procurement of: (a) defence goods, works and services; and (b) other goods, works and services needed to guarantee security and defence requirements. For non-classified procurement, statutory value thresholds determine when the special procurement route applies; the current amounts should be confirmed before a procedure is launched. Items containing state-secret information are governed by the classified regime regardless of value.
Law No. 549-IV “On State Control over International Transfers of Military and Dual-Use Goods” applies a parallel classification specifically to cross-border movements: military goods are weapons, ammunition, military and special equipment, and related technologies and services designed specifically for military use; dual-use goods are items not designed specifically for military use but capable of military application, including in the manufacture of weapons of mass destruction or their delivery systems.
The two frameworks intersect but are not identical: procurement law governs what the state customer buys and how, while export-control law governs who may transfer those goods across borders and under what permit conditions. Understanding both is necessary before approaching a Ukrainian defence customer.
3. Participant Exclusion Grounds
Several categories of companies are excluded from defence procurement regardless of what they supply.
Sanctions. Ukraine’s sanctions legislation may bar procurement from sanctioned entities and suppliers of goods of restricted origin. The company, its beneficial owners, and key counterparties should be checked against the current Ukrainian sanctions register before any submission.
Russian, Belarusian and Iranian nexus. Under the wartime procurement framework — CMR No. 1275-2022 — companies are excluded if they are registered in Russia, Belarus, or Iran; if their beneficial owners include nationals of those states; or if the goods they supply originate from those countries. This check operates at the level of the ultimate beneficial owner (UBO), not merely the entity registration level, and a recent corporate restructuring does not cure a genuine beneficial-ownership connection.
Corruption and other registers. Entries in registers identified by the current procurement rules may require rejection of a participant. The company and its officers should therefore be screened against the criteria stated in the relevant procedure before filing.
UBO transparency. A Ukrainian subsidiary must keep its beneficial-owner information current in the Single State Register. An opaque ownership structure creates qualification, banking compliance, and contract-performance risks.
4. Defence Procurement Procedures in Ukraine
Not all defence procurement goes through a public competitive tender. Not all defence procurement goes through Prozorro. There are four principal procedures, and which one applies depends entirely on what is being procured and how it is classified under Law 808-IX.
| Route | Category | Procedure | Participation of foreign suppliers |
|---|---|---|---|
| Closed procedure | Products containing state-secret information | Invitation of suppliers from the relevant Registry; timing follows the special procedure | May require a Ukrainian structure, entity security permit and individual clearances |
| Non-public procurement | Weapons, military and special equipment, ammunition, development, repair or modernisation services and fortification construction | The state purchaser determines the procedure; no generally available standard criteria | Legally possible; practical access is assessed for the specific purchaser |
| Framework agreements (e-system) | Defence goods, works and services that are not weapons and do not contain state secrets | Qualification under the current rules; tender or request for proposals | Permitted; the qualification application is filed through the e-system |
| Direct contract | Strictly defined circumstances | Non-competitive procedure: force majeure, cancelled procedure and other expressly listed cases | Permitted where the relevant legal ground exists |
Related article: Peculiarities of Defence Procurement in Ukraine
5. Electronic Procurement and Framework Agreements
For defence items that are not weapons, military equipment, or state secrets — and that meet the value threshold — procurement runs through the electronic procurement system, the route where the standard competitive logic of procurement law most clearly applies.
Under the wartime framework, companies enter a supplier pool through a qualification application reviewed within the period set by the current rules. Acceptance requires demonstrating:
- legal entity status and valid registration;
- financial and economic standing;
- technical and professional capability;
- quality-management documents and certificates required by the specific procurement, which may include ISO or NATO AQAP standards;
- absence from the NACP corruption register.
Certificates confirming qualification may be issued by independent domestic or foreign certification bodies. Once admitted, suppliers participate in open tenders or requests for proposals from within the qualified pool. Martial-law procedures may use shortened timelines, so the notice and tender documents must be checked for the applicable deadline.
The Russian/Belarusian/Iranian nexus exclusion and sanctions check apply at the qualification stage, where candidate information is screened before admission to the pool.
The Ministry of Defence oversees both principal procurement bodies; its MoD procurement overview describes the quality assurance framework, including the NATO AQAP certificate database.
6. Non-Public Procurement of Weapons and Military Equipment
This route applies to: weapons; military and special equipment; ammunition and their components; explosives for military purposes; services for the development, repair or modernisation of weapons, military equipment and ammunition; military engineering and fortification construction; and road repair in active combat zones.
For these categories, the standard competitive procedures of Law 808-IX and Law 922-VIII do not apply. CMR No. 655-2024 (June 2024) explicitly extended this non-public scope to cover the full weapons, military equipment and ammunition category. The state purchaser determines the supplier-selection process, including any qualification criteria, documentation requirements, and engagement steps; there are no publicly standardised criteria for this route.
Foreign suppliers may participate on equal legal terms under Art. 13(1) of Law 808-IX. The eligibility exclusions — for prohibited-state nexus at UBO level, sanctions, UBO non-transparency, and register of persons who committed corruption or corruption-related offences — apply here as in any other route. However, the practical path to engagement with a specific contracting authority must be assessed on a case-by-case basis, as each state purchaser sets its own process. Legal advice is recommended before approaching the Defence Procurement Agency, the State Logistics Operator (DОТ), or any other authority through this route.
7. Closed Procurement and State Secrets
A separate procedure governs procurement items that contain classified information. This route has two additional requirements beyond standard qualification.
Registry. Suppliers must be registered in the Реєстр (Registry), maintained by the Chief Planning Authority, by product category. Invitations go only to Registry-registered suppliers in the relevant category. If only one supplier is registered for a category, direct award to that supplier is permitted.
Security clearances. The entity must hold a “special permit” to conduct activities involving state secrets. Each employee who will access classified materials requires an individual security clearance, issued after SBU (Security Service of Ukraine) vetting. The vetting period and any expedited martial-law procedure should be confirmed before the company plans its participation.
Under Law No. 3855-XII “On State Secrets”, foreign nationals may access classified information in Ukraine only in exceptional cases — by Presidential directive, or under a specific international treaty. Foreign legal entities face additional restrictions on conducting classified activities in Ukraine. Companies with foreign personnel or a foreign parent structure who require access to classified technical documentation should seek specialist legal advice before pursuing this route.
Secrecy levels. Ukrainian law recognises several classification levels and corresponding secrecy periods. The current periods and any martial-law adjustments should be confirmed for the specific information involved.
What is generally not classified. Under Art. 8(2) of Law 3855-XII, the fact that a defence procurement is being conducted, and its subject matter, are generally not classified. Classified details appear only in annexes to tender documentation where those specific details are legitimately secret.
Confidentiality obligations. Contracting authorities may require suppliers to demonstrate documented information-security capacity and to impose equivalent confidentiality obligations on any subcontractors — these obligations flow through the supply chain from the state contract downward.
8. Direct Contracts during Martial Law
Direct contracting — a single-supplier contract without a competitive procedure — is not a general wartime rule. It may be used only on grounds listed in the current wartime rules, including:
- force majeure;
- a prior simplified procurement was cancelled because all candidates — at least three — failed to submit bids, on the same terms as the original procedure;
- SBU vehicle maintenance and transport operations;
- military personnel recruitment transport;
- used tactical vehicles meeting specifically defined specifications;
- satellite communications procurement for defence forces.
Essential contract terms may be amended only on grounds permitted by the current rules. Pricing and any permitted intermediary markup must be checked for the relevant contract category before signing.
9. Participation Models for Foreign Suppliers
There are five structures through which foreign companies supply defence products in Ukraine. The right structure depends on the product category, procurement route, licensing obligations, and the company’s long-term intent.
Offset agreements. Ukrainian law provides offset mechanisms for certain foreign defence contracts. Their application during martial law is restricted by special rules; the applicable threshold and the position after martial law should be confirmed before the contract is structured.
| Model | Description | Practical implications |
|---|---|---|
| Direct foreign supply | The foreign company contracts directly with a Ukrainian state purchaser | Legally possible; practical access to non-public routes and purchaser requirements must be assessed separately |
| Ukrainian subsidiary (LLC) | The foreign company establishes a Ukrainian LLC | The subsidiary acts as a Ukrainian legal entity; UBO disclosure and licensing review are required |
| Joint venture | A joint Ukrainian LLC with a Ukrainian partner | All participants’ UBOs are screened; the model may support localisation and long-term cooperation |
| Subcontractor | Supply through a Ukrainian prime contractor | The prime contractor is responsible to the purchaser; sanctions and confidentiality requirements may flow down |
| Authorised representative | Participation through an agent or distributor | The status under defence procurement law must be confirmed for the specific model |
10. Export Control and Import of Defence Products
Any cross-border movement of military or dual-use goods — into Ukraine or out of it — falls under the state export-control oversight established by the Law of Ukraine “On State Control over International Transfers of Military and Dual-Use Goods”, regardless of which procurement route applies. The competent authority is the State Service of Export Control of Ukraine.
The principal permit requirements are:
Inter-agency coordination may extend the review period in complex cases. Incomplete applications may be left without consideration or rejected under the applicable procedure; current timing should be confirmed before filing.
Entities engaged in international transfers must comply with the applicable registration and internal-control requirements and retain transaction records for the statutory period. The current retention period should be verified for the planned transaction.
Wartime import exemption. CMR No. 1378-2022 establishes a list of military and dual-use goods for which Law 549-IV does not apply to imports into Ukraine during martial law. This exemption covers export-control requirements on import — it is not a customs duty or VAT exemption. Certain goods remain outside the exemption: items for which state guarantees on end-use are required, and specific weapons-component categories. The status of the listed goods and their scope should be verified against the current text of CMR No. 1378-2022 at the time of the specific transaction.
Special wartime export procedures. The Cabinet resolution on international transfers during martial law provides a separate regime for designated manufacturers and state-contract executors. Whether a foreign entity may use it, and which ownership, sanctions, end-use, and reporting conditions apply, should be checked against the current text for the specific transaction.
A foreign company’s home-country export authorisation does not replace the Ukrainian International Import Certificate or any other Ukrainian import-control requirement — the two regimes operate independently.
| Permit or procedure | Legal basis | Timing |
|---|---|---|
| International Import Certificate | International-transfer legislation | Confirm before filing |
| Import permit | International-transfer legislation | Confirm before filing |
| Export permit for dual-use goods | International-transfer legislation | Confirm before filing |
| Export permit for military goods | International-transfer legislation | Confirm before filing |
| Inter-agency coordination | Complex transactions | May extend the review |
| Transit conclusion or permit | International-transfer legislation | Confirm before filing |
11. Licensing of Defence-Related Activities
Ukrainian licensing law — Law No. 222-VIII “On Licensing of Types of Economic Activity” — confirms specific activities in the defence-adjacent space that require a state licence:
- manufacture and repair of non-military firearms and their ammunition (Art. 7(11));
- development, manufacture, and supply of special technical means for covert information acquisition — technical intelligence means (Art. 7(23)), with specific criteria defined by the Security Service of Ukraine.
Whether a specific military-purpose manufacturing, repair, trade or service activity requires a separate licence must be checked for the exact product and activity. The Law of Ukraine “On Licensing of Types of Economic Activity” does not explicitly list manufacturing of military weapons, military and special equipment, or ammunition as a licensed activity within its framework. A separate licensing regime for production activities in the defence-industrial complex may exist under other legislation, but this was not confirmed from the official sources reviewed for this article. Companies planning to manufacture or significantly process defence goods in Ukraine should obtain specialist legal advice on the applicable licensing requirements before committing to production arrangements.
Regardless of the specific licensing question, the Law of Ukraine “On Licensing of Types of Economic Activity” (Art. 9(1)) restricts licence access for entities controlled by, or with trade relations with, residents of states conducting armed aggression against Ukraine — consistent with the broader defence procurement exclusion framework.
12. Quality, Codification and State Acceptance
NATO AQAP. Ukrainian defence procurement uses NATO AQAP (Allied Quality Assurance Publications) approaches to quality assurance. AQAP documentation may be required in a particular procurement, but its mandatory scope and the acceptable certification body should be checked against the tender documents and current rules.
Codification. Ukraine integrates NATO codification standards for defence supply items. Codification is relevant to defence procurement contracts and to product identification across the supply chain, but whether it is legally mandatory for a specific product or contract type — and which authority administers it — requires specialist legal advice.
State acceptance. State acceptance procedures for defence products exist in Ukrainian procurement practice, but their universal mandatory scope was not confirmed from the primary legislation reviewed for this article; whether formal state acceptance applies to your specific product and contract type should be confirmed with legal counsel.
Related article: Production and Testing of Weapon Samples in Ukraine
13. Defence City and Production Localisation
Defence City is a special legal regime for companies operating in Ukraine’s defence-industrial sector. It may be relevant to a foreign manufacturer establishing a Ukrainian subsidiary or joint venture and localising production.
The primary-law basis, eligibility criteria, available benefits, registration procedure, and duration of the regime must be confirmed before an investment or production structure is built around it. Defence City does not itself grant access to procurement procedures or guarantee state orders.
A foreign-owned Ukrainian company should assess its ownership structure, sanctions exposure, revenue profile, and localisation plan before relying on the regime.
If localisation requires foreign specialists, the rules on applying for a work permit in Ukraine should be checked separately.
Frequently Asked Questions
Can a foreign company supply weapons or military equipment to Ukraine without establishing a local legal entity?
Yes. Ukrainian law generally permits a foreign legal entity to contract directly with a Ukrainian state purchaser. For weapons and military equipment, the purchaser determines the selection process, so practical access must be assessed for the specific authority.
Which legislation governs defence procurement in Ukraine?
The principal framework is the Law of Ukraine “On Defence Procurement” together with the Cabinet of Ministers’ special wartime rules. The general Public Procurement Law defines the limits of its scope, but its standard procedures do not automatically apply to defence procurement.
Is a Ukrainian legal entity always required?
No. Foreign companies may participate without a local legal entity. A Ukrainian structure may nevertheless be practically necessary for classified work, local production, recurring supplies or long-term localisation.
What is the exemption from international-transfer requirements under CMR No. 1378-2022?
The resolution exempts specified categories of goods from certain requirements of the Law of Ukraine “On State Control over International Transfers of Military and Dual-Use Goods” when imported into Ukraine during martial law. It is not a customs-duty or VAT exemption.
Do offset-agreement requirements currently apply?
During martial law, the application of offset rules is limited by special provisions. The thresholds, scope of the limitation and rules after martial law should be confirmed for the specific contract.
Is a licence mandatory for supplying military goods or services in Ukraine?
The answer depends on the specific product and activity. Licensing law expressly covers certain adjacent activities, while possible special requirements for military products must be checked under sector-specific legislation.
How DLF Can Help
DLF attorneys-at-law advises foreign manufacturers and suppliers entering Ukraine’s defence supply chain. The firm helps identify the appropriate procurement procedure through its public procurement practice and supports the establishment or restructuring of a Ukrainian subsidiary or joint venture through its corporate law practice.
DLF also reviews UBO structures, sanctions exposure, contract terms, export-control requirements, licensing, quality assurance, codification, and access to classified information. Where localisation or contract performance requires foreign specialists in Ukraine, the labour law practice assists with the relevant employment and work-permit arrangements.
Iurii Dynys, counsel, attorney-at-law — DLF attorneys-at-law
Contacts: +380 44 384 24 54, info@dlf.ua
This material is for general information purposes only. The application of the approaches described depends on the circumstances of each specific situation and requires a separate legal assessment.