It is critically important for our state to open up arms exports, - Belbas, CEO of Ukrainian Armor
The Ukrainian defense-industrial complex has reached a point where most of the weapons and military equipment for the front lines are procured domestically. However, without attracting private foreign investment and the latest technologies, the further development of the domestic defense sector will be at risk. To address this, the government must change its approach to exports.
This was stated by "Ukrainian Armored Vehicles" CEO Vladislav Belbas during the conference "Defense 2027. Army, Technology, Industry," organized by Radio NV and the National Association of Defense Industry Enterprises of Ukraine, according to Censor.NET.
Foreign businesses are afraid to enter Ukraine
In assessing the market’s current capabilities, Vladislav Belbas noted as a positive development the establishment of closed production cycles for various types of weapons in Ukraine. According to him, the government currently procures the lion’s share of its military equipment domestically.
At the same time, the company’s CEO emphasized that the state’s domestic resources are insufficient for a large-scale technological breakthrough; therefore, the resumption of exports should be viewed not as a way to fill the budget with tax revenue, but as the key to foreign innovation.
The head of "Ukrainian Armored Vehicles" reported that during a series of recent meetings with foreign partners, investors explicitly expressed concerns about the closed nature of the Ukrainian market.
Separately, Vladislav Belbas highlighted the internal risks created by government agencies themselves due to constantly changing rules and experiments in the procurement system. The government’s fixation solely on reducing the cost of procurement lots could harm soldiers on the front lines, who need high-quality equipment first and foremost, not just the cheapest options.
"We can't keep 'turning the system upside down.' We need to develop gradually, fine-tune processes, and ensure the stability of the rules of the game so as not to disrupt production, which has only just begun," said the company's CEO.
The main obstacle preventing domestic developers from directly entering foreign markets remains the financial burden imposed by the government.
"Under the current regulatory framework, we have a 20 percent levy in place. No foreign buyer is willing to purchase a Ukrainian armored vehicle or drone with such a high surcharge. As soon as this 20 percent levy is abolished, we will be able to fully export our products," concluded Vladislav Belbas.
In addition, he emphasized the need to develop transparent and clear rules governing government arms procurement. In his view, the government must clearly define the procedures for conducting tenders so that manufacturers can plan their work in advance.
"The procedure for procuring weapons through competitive bidding and how it works must be clearly defined: exactly how it is conducted, how it is announced, and how many rounds it involves," Belbas concluded.
