Service and Repair Centres of Foreign Defence Companies in Ukraine
A foreign defence company may conduct service or repair operations in Ukraine through a Ukrainian company, branch, representative office, joint venture or subcontracting model. Controlled international transfers may require the relevant documents from the State Service for Export Control of Ukraine (SSEC of Ukraine). During martial law, certain international transfers are governed by a special procedure; the applicable customs, sanctions, procurement and security requirements continue to apply.
This article is intended for foreign defence companies, manufacturers, service providers, investors, legal teams and compliance professionals planning to establish or localise a service or repair centre in Ukraine.
1. Legal Framework for Service and Repair Centres in Ukraine
2. Repair, Maintenance and Modernisation
3. Operating Models for Foreign Defence Companies
4. SSEC of Ukraine Registration and Documents for Repair Services
5. Customs Regime for Goods Imported for Repair
6. Wartime Tax and Customs Relief
7. Currency Regulation and International Payments
8. Defence Procurement and Contracts with State Customers
9. State Secrets and Access to Defence Facilities
10. Cybersecurity and Critical Infrastructure
11. Work Permits for Foreign Technicians
12. Sanctions Screening and Counterparty Checks
13. Practical Checklist for Service and Repair Centres
Frequently Asked Questions
How DLF Can Help
1. Legal Framework for Service and Repair Centres in Ukraine
The legal framework for a service or repair centre covers export control, defence procurement, customs law, state-secrecy rules, employment matters and special wartime requirements.
The Law of Ukraine “On State Control over International Transfers of Military and Dual-Use Goods” treats, among other activities, the repair, maintenance, modification and modernisation of military goods or technologies as military services when those services are provided to foreign legal entities or individuals in Ukraine or abroad. International transfers of such services are subject to state export control.
The Law of Ukraine “On Defence Procurement” covers repair, maintenance and technical support within the lifecycle of defence goods. Where a service centre works for a state customer in the defence sector, the contractual model must account for this Law and the current wartime defence-procurement rules.
The Customs Code of Ukraine regulates the import of foreign goods for repair, their placement under the appropriate customs procedure and their subsequent re-export after the work is completed.
Law of Ukraine “On State Secrets” applies where carrying out the work or accessing the facility involves information constituting a state secret.
Military goods are governed by the procedure approved by Cabinet of Ministers Resolution No. 1807, while dual-use goods are covered by the procedure under Resolution No. 86. During martial law, international transfers to which Cabinet of Ministers Resolution No. 875 of 1 July 2026 applies are subject to its special procedure; Resolutions No. 1807 and No. 86 apply to the extent that they do not conflict with that procedure.
2. Repair, Maintenance and Modernisation
For export-control purposes, repair, maintenance, modification and modernisation may constitute military services. The commercial label used in a contract therefore does not determine whether an SSEC of Ukraine document is required; the decisive factors are the export-control classification of the goods, the content of the service, the technical information involved and the direction of the international transfer.
Under customs law, repairs to foreign goods imported into Ukraine for subsequent re-export may be carried out under the inward-processing customs procedure. The Customs Code also distinguishes repair from operations that create a new product or materially alter the characteristics of the original goods.
Before the project starts, the planned work should be assessed separately from an export-control and customs-law perspective and described accurately in the contract. A substantial upgrade or the manufacture of a new item may require a different regulatory model from ordinary repair or maintenance.
3. Operating Models for Foreign Defence Companies
The operating model should be selected with regard to the import model, contractual arrangements, staffing, access to technical information and the allocation of export-control responsibilities.
A Ukrainian subsidiary in the form of an LLC or JSC is a separate legal entity. If the subsidiary itself carries out controlled international transfers, it must complete the required SSEC of Ukraine registration and obtain the documents applicable to those transfers. Ukrainian tax, employment, corporate and contractual issues must also be addressed.
A branch is a separate subdivision of the foreign legal entity and is not a separate legal entity. It may perform all or part of the parent company’s functions. For service operations, the project should identify who will be the contracting party, importer, employer and entity responsible for controlled international transfers.
A representative office is also not a separate legal entity and represents and protects the interests of the foreign company. If repair services or other commercial activities are to be carried out through it, the company should verify that they fall within the office’s registered scope of activity and separately assess permanent-establishment tax implications and the ability to meet permitting requirements.
A joint venture with a Ukrainian defence partner may be used to localise personnel and equipment and to structure intellectual-property rights and contractual arrangements. A Ukrainian partner’s registration or permits do not automatically transfer to the new company; if the joint venture itself carries out controlled international transfers, it must obtain its own SSEC of Ukraine registration and documents.
Under a subcontracting model, a foreign company may perform part of the main contractor’s obligations. Export-control requirements depend on the actual role of each participant, so an SSEC of Ukraine document issued to the main contractor should not be assumed to cover controlled international transfers or services carried out independently by the subcontractor.
4. SSEC of Ukraine Registration and Documents for Repair Services
Point 23 of the procedure approved by Resolution No. 1807 provides, under the general procedure, for an SSEC of Ukraine conclusion for the temporary import of military goods for repair and an SSEC of Ukraine permit for the international transfer of the corresponding repair services together with the subsequent re-export of the repaired goods. Transactions falling within the special procedure under Resolution No. 875 must follow that procedure.
An SSEC of Ukraine conclusion is issued for the temporary import of a foreign customer’s goods for repair, maintenance or modernisation. According to SSEC of Ukraine information on this administrative service, the processing period for an application concerning the temporary import of military goods is up to 30 calendar days; the shorter period applies only in specified cases.
An SSEC of Ukraine permit, in turn, is required for the international transfer of repair services and re-export of repaired goods where the applicable procedure so provides. The processing period and supporting documents depend on the goods, the nature of the transaction and the procedure applicable to the particular transfer.
An entity that itself carries out controlled international transfers must complete the required SSEC of Ukraine registration before those transfers begin. For each project, the main item, spare parts, software, technical documentation and technology should be classified separately because different elements of the same service project may have different export-control classifications.
Ukrainian licensing legislation does not establish a standalone general licence specifically for repairing military goods. This does not remove export-control, state-secrets, defence-procurement or other sector-specific requirements. A confidentiality agreement also does not replace an SSEC of Ukraine document where the international transfer itself is controlled.
5. Customs Regime for Goods Imported for Repair
Foreign goods brought into Ukraine for repair and subsequent re-export are generally placed under the inward-processing customs procedure governed by Articles 147–161 of the Customs Code of Ukraine. The enterprise must hold the relevant authorisation to place the goods under this procedure; the customs authority may grant it on the basis of an application by the enterprise or a customs declaration. However, customs authorities will not grant an authorisation to place goods under a customs procedure on the basis of a customs declaration if:
- the enterprise has been granted three or more authorisations to place goods under a customs procedure on the basis of a customs declaration within one month;
- the enterprise has been granted 20 or more authorisations to place goods under a customs procedure on the basis of a customs declaration within one year;
- goods with a value exceeding EUR 10,000 are placed under a customs procedure requiring authorisation.
The procedure permits processing operations specified by the Code, including modernisation and repair, as well as restoration, adjustment and calibration. After the work is completed, the goods or processed products are re-exported in accordance with the applicable customs rules.
Inward processing should not be confused with processing outside the customs territory, which applies when Ukrainian goods are sent abroad for repair. Tools, diagnostic equipment and other property brought into Ukraine for use during the work and returned without material alteration may instead qualify for temporary admission.
Customs clearance does not replace export control. Before importing a particular item, the company should check the applicable customs procedure, the export-control status of the goods, the conditions for re-export after repair and the required SSEC of Ukraine documents.
6. Wartime Tax and Customs Relief
Wartime relief is not a blanket exemption for any import connected with defence. Eligibility depends on the commodity code, intended use, the status of the importer or recipient and the conditions of the particular transaction.
Import-duty and VAT relief is governed by the Customs Code, the Tax Code and special wartime rules. The version of the rules in force on the relevant import date should be checked for the particular goods and transaction.
For spare parts, tools and equipment used by a repair centre, eligibility for import-duty or VAT relief should be assessed separately by reference to the particular goods, importer, recipient and contractual model.
7. Currency Regulation and International Payments
Special wartime foreign-exchange restrictions remain in force in Ukraine and are regularly amended by the National Bank of Ukraine as liberalisation develops. For a service centre, the rules may affect payments for services to non-residents, purchases of foreign currency, import settlements, repayment of financing and dividend repatriation.
The applicable rules should be checked immediately before a material cross-border payment on the official NBU page. The bank processing the payment will also review the supporting documents, economic purpose and compliance of the payment with the rules then in force.
8. Defence Procurement and Contracts with State Customers
Repair and maintenance may qualify as defence services under the Law of Ukraine “On Defence Procurement”. During martial law, the applicable method of defence procurement and its requirements are determined by the Law together with the current version of Cabinet of Ministers Resolution No. 1275 and depend on the subject matter, secrecy status and circumstances of the particular procurement.
Foreign business entities may act as contractors under Ukrainian defence procurement. Whether a foreign company can participate in a particular procurement depends on the category of goods or services, the state customer’s requirements, the secrecy regime and the applicable procurement method.
Article 12 of the Law of Ukraine “On Defence Procurement” contains a general rule on compensation agreements for certain imports from a foreign legal entity exceeding EUR 5 million. However, under the current rules of Resolution No. 1275, state defence customers do not conclude compensation or offset agreements when carrying out procurement during martial law.
Where the subject matter or related information constitutes a state secret, special procedures and information-protection requirements apply. A separate wartime procedure also applies to procurement of weapons, military and special equipment and services for their development, repair or modernisation.
As a general rule, the share of a state contract that the successful bidder intends to subcontract to third parties may not exceed 50% of the value of the main state contract. The value of works or services within the subcontracted share may also not exceed 50% of the value of the corresponding works or services under the main contract; with the state customer’s consent, this latter limit may be exceeded if the contractor provides a reasoned conclusion. The main contractor remains responsible to the state customer for performance of the subcontract.
9. State Secrets and Access to Defence Facilities
Where a repair project requires access to information constituting a state secret, the Law of Ukraine “On State Secrets” applies. Foreign nationals and stateless persons may obtain access to state secrets only in exceptional cases on the basis of an international treaty of Ukraine or a written directive of the President of Ukraine based on proposals from the National Security and Defence Council of Ukraine.
Enterprises, institutions and organisations carrying out activities connected with state secrets must obtain the special permits required by law. An ordinary NDA or a contract with a Ukrainian partner does not by itself create a right of access to classified information.
Work on military equipment does not automatically mean that state secrets are involved. Where servicing does not involve state secrets, the company should determine the actual secrecy or protection status of the information, documentation and facility; additional requirements arise only where protected or classified information is actually involved.
10. Cybersecurity and Critical Infrastructure
Operating in the defence sector does not by itself make a service or repair centre a critical infrastructure object. The Law of Ukraine “On Critical Infrastructure” provides for the identification and categorisation of such objects under statutory criteria.
If the service site is identified as a critical infrastructure object, the operator becomes subject to specific obligations concerning security, risk assessment, incident response and cooperation with the competent authorities.
The Law of Ukraine “On the Basic Principles of Cybersecurity in Ukraine” separately regulates the protection of critical information infrastructure. For a particular service centre, the company should determine whether its information systems are subject to specific cybersecurity requirements.
11. Work Permits for Foreign Technicians
A Ukrainian legal entity employing foreign technicians generally must obtain a work permit for the foreign employee under the Law of Ukraine “On Employment of the Population”. The Law, however, provides a statutory exemption for employees of branches and representative offices of foreign legal entities that are registered in Ukraine.
The statutory period for deciding an initial permit application is generally up to seven working days. For seconded foreign employees and intra-corporate transferees, a permit may be issued for the duration of the relevant contractual or corporate basis, but for no more than three years; for other foreign employees, the statutory maximum is generally two years.
A seconded worker is not automatically exempt from the permit requirement; this category requires a separate set of supporting documents. A work permit does not grant access to state secrets and does not replace any other authorisations or access procedures required for a particular defence facility.
12. Sanctions Screening and Counterparty Checks
The Law of Ukraine “On Sanctions” provides for a wide range of restrictive measures that may affect trade, technology transfers, assets, licences, permits and participation in procurement. The official Ukrainian State Register of Sanctions should be checked before contracting and again before material payments or transfers of goods and technology.
For an international defence project, relevant EU, US and UK sanctions lists should also be reviewed where they may apply to the parties, banks, goods or supply chain. This screening supplements the Ukrainian sanctions analysis but does not replace it.
The current version of Resolution No. 1275 contains specific restrictions, including on procurement from persons and entities linked to Russia or Belarus and, for certain procurement routes, on goods originating in Russia, Belarus or Iran. Before participating in a particular defence procurement, the current requirements concerning the participant, ownership structure and origin of goods should be checked.
13. Practical Checklist for Service and Repair Centres
- determine the operating model in Ukraine and allocate the roles of importer, service-contract party, employer and entity responsible for controlled international transfers;
- classify the main item, spare parts, software, technical documentation and technologies under export-control rules;
- confirm SSEC of Ukraine registration and obtain the required documents before any controlled international transfer, taking the special wartime procedure into account;
- select the appropriate customs procedure for goods imported for repair and separately assess temporary admission for tools and diagnostic equipment;
- check current customs and tax relief for the exact commodity code, importer, recipient and intended use;
- verify the current NBU rules before each material cross-border payment;
- for a state customer, identify the applicable defence-procurement route, secrecy regime and current requirements of Resolution No. 1275;
- screen the counterparty, ownership structure, goods origin and relevant banks against Ukrainian and applicable international sanctions lists;
- determine whether foreign technicians require work permits, taking the employment model and the statutory exemption for staff of registered branches and representative offices into account;
- determine whether the project involves state secrets or other protected information and arrange the required permits and access before work begins;
- check whether the service site is designated as critical infrastructure and which cybersecurity requirements apply;
- address scope of work, warranty obligations, liability, insurance, technical-documentation rights and intellectual property in the contract;
- maintain ongoing monitoring of changes to SSEC of Ukraine, NBU, defence-procurement and sanctions rules until the project is completed;
Frequently Asked Questions
Can a foreign defence company open a service or repair centre in Ukraine?
Yes. A Ukrainian subsidiary, branch, representative office, joint venture or subcontracting model may be used. The structure should be selected with regard to the import model, export-control position, tax treatment, staffing arrangements and access to defence information.
What SSEC of Ukraine documents are required for repair services?
Under the general procedure, an SSEC of Ukraine conclusion is required for the temporary import of foreign goods for repair, while an SSEC of Ukraine permit is required for the international transfer of repair services and re-export of the repaired goods where the applicable procedure so provides.
What customs regime applies to goods brought into Ukraine for repair?
The usual route is the inward-processing procedure under Articles 147–161 of the Customs Code of Ukraine. Placement under this procedure requires the relevant customs authorisation. Temporary admission may instead be relevant for tools and equipment used during the work and returned without material alteration.
Do wartime exemptions apply to imports of spare parts and tooling?
Not automatically. Eligibility for relief depends on the exact commodity code, intended use, the status of the importer or recipient and the customs and tax rules in force on the import date.
Can foreign technicians work at Ukrainian defence facilities?
Yes, subject to employment and security requirements. If a Ukrainian legal entity employs a foreign national, the employer generally must obtain a work permit; the Law provides an exemption for employees of registered branches and representative offices of foreign legal entities. If the work involves state secrets, a separate legal basis and the relevant access authorisations are required.
What sanctions checks are required?
The counterparty and ownership structure should be checked against the Ukrainian State Register of Sanctions before contracting and key transactions. For an international project, the applicability of relevant EU, US and UK lists and the current defence-procurement restrictions should also be assessed.
How DLF Can Help
DLF attorneys-at-law supports foreign defence manufacturers, suppliers and investors at the key stages of establishing and operating service and repair centres in Ukraine. The support covers corporate and contractual structuring, classification of controlled goods, SSEC of Ukraine documentation, joint ventures and subcontracting, sanctions screening, customs and tax analysis, employment matters and defence procurement. DLF also advises on related corporate law, M&A and public procurement matters.
Iurii Dynys, Counsel, Attorney-at-law — DLF attorneys-at-law
Contacts: +380 44 384 24 54, info@dlf.ua.
This material is intended for general information only. The application of the approaches described depends on the circumstances of each specific case and requires a separate legal assessment.