BREAKING: UA Export Control Head: No ban on defense tech exports

He wants "balanced" approach. In a wide-ranging interview, he said his agency wishes to cooperate closely with defense sector: "We are your friends."

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Tim Mak & Oleksandr Matviienko
October 11, 2024 • Estimated Reading Time: 4 minutes

In an exclusive interview with Counteroffensive.Pro just minutes ago, the head of Ukraine’s State Service for Export Control Oleksandr Pavlichenko outlined his goals for a friendly relationship with defense tech; a more simplified and transparent permit process; and a “balanced” system of export control.

Export control regulations are central to the future of Ukraine’s young defense industry, and are closely tracked by Ukrainian firms and their foreign partners.

Pavlichenko said he understands the need for exports to build Ukraine's young defense industry, and that he supports the idea in theory — unless the items in question are needed by Ukraine's military/industry; or if there is a substantial risk of re-export to Ukraine’s adversaries.

He said there is a widespread misconception that there is a blanket ban on defense exports to foreign allies.

“It is allowed,” Pavlichenko said. “No [legislation] suspending export has been adopted since the beginning of the invasion.”

This is not to say that there is an export free-for-all. He acknowledged that disapproval of applications has risen from 10 percent in 2021, to 31 percent in 2023.

THE PROCESS: According to Pavlichenko, export permits are evaluated on whether the Ukrainian military or domestic military production requires the dual-use or military goods in question. An intergovernmental sign-off process must occur.

In addition, permits will only be provided after a government assessment that there is a low risk of re-export to adversarial countries.

He said that Ukrainian companies are encouraged to submit permit requests, which will be evaluated on a case-by-case basis on the above criteria.

His goal: permit decisions within 30 days of a completed application with necessary documentation, and no more than 90 days.

"We understand the problems which our industry faces today," he told Counteroffensive.Pro. "We understand that they are looking for other markets to sell [their] products, to maintain the level of production on the present level. Otherwise they would be forced to fire people or close their production."

He ticked off the benefits of defense exports: more jobs, more foreign income for the Ukrainian budget, and the development of a promising domestic industry.

“We don't want to be taken as an obstacle, as a barrier for business,” he said. “But [the defense industry needs] to understand that our main mission is to find a balance between national security... and the business interest."

As this interview just happened moments ago, we are currently putting together a comprehensive story, which will publish as a deep dive tomorrow. Click the blue button to receive it:

Tomorrow’s report will include:

  • A step-by-step explanation on how defense export permits are processed.

  • Pavlichenko’s suggestions on the steps to take for the best possible chance of receiving export control approval.

  • A description of new legislation his agency is proposing to streamline the process of defense exports.

  • His goal for how long it should take from application to a decision on an export control permit.

  • A further explanation of his arguments as to why some defense tech exports should be permitted during a time of war.

  • How to receive a temporary permit to show Ukrainian defense tech at foreign conferences or trade meetings.

  • Why he wants more invites to industry meetings to explain his agency’s position.