Obstacles to Ukrainian military software codification

BLUF: Ukrainian developers are struggling to get software products codified by the military due to a lack of regulations. Without it, software startups cannot sell to the government because all procurement demands a special code. 

In other news: the winner of a NATO competition to develop a counter for Russian glide bombs plans testing for its product in Ukraine. The State Service for Export Control shared statistics on the number of export applications filed during the full-scale war. Also, a new venture fund will be established in 2025.  

THE BIG STORY: Troubles with military software codification

Software developers have needed to be creative to get their products codified by the Ukrainian Ministry of Defense. 

Without a straightforward codification process, software developers are now developing military applications as efficiently as they could be. Defense programs cannot be supplied to the army on a centralized level, which complicates the usage of software by every unit – threatening lives in the ongoing war.

Codification involves getting a number assigned to each specific product, which is required for military procurement. However, existing software regulations lack a clear approach for completing this step. 

When it comes to physical equipment, all procedures are defined by regulations. The company needs to prepare a set of documents and then wait for laboratory testing and military trials, which can take up to 20 days. 

If the product meets the characteristics claimed by a company, it receives a code; if not, the procedure must be repeated and fixed. But software is not a physical product: a program can only be installed on a computer and cannot be tested on a training ground. 

The actual codification procedure does not contain any specific guidance regarding software, said Nadia Denysiuk, head of the Military & Defense Tech practice at Axon Partners.

Ways to obtain software codification

On February 6, 2025, the Cabinet of Ministers passed a resolution that equates computer programs to components of weapons and military equipment. These reforms were in Resolution №234, which regulates the development and adoption of military goods.

These include:

• Software components of products (like software for drones);

• IT products;

• Military command and monitoring systems;

• Situational awareness programs.

The changes also allow software manufacturers to obtain critical enterprise status, reserve 100% of employees from conscription, and take out loans at preferential rates of 5% per year.

Despite these changes, the main problem persists: the new resolution lacks a clearly defined procedure, said Viktoriia Yaremchuk, CEO of Farsight Vision, a platform developer creating 3D models of terrain.

"There's no specific action plan. For example, if you want your product to be officially purchased by military units or participate in tenders, it's not clear what to do [for software codification]," Yaremchuk explained in a conversation with Counteroffensive.Pro.

The Ukrainian codification process is based on NATO rules and the MoD’s order from 2017. The core of the process is determining the product’s type and characteristics according to NATO classifications. It has a separate description for different kinds of software and their varieties. 

Without defined criteria for software, it’s unclear how to pass the whole process.

"Most questions arise during the technical evaluation of the product and when deciding on further delivery stages to the troops," said Denysiuk. 

How manufacturers codify software

Often, creativity helps developers overcome these obstacles and codify software. Software developers currently have a few options for going through the codification process: either try to obtain NATO codification, or add a hardware component.

But, private companies cannot apply to NATO codification by themselves. It can only be done through the government. The alternative route will be to register the intellectual property in a NATO country and go through the codification process there. But in that case, you might be sued in Ukraine, said Yaremchuk. 

The second option means developers will codify not a program, but a computer or another physical element where it is installed. Hardware components are easier to codify because they have clear requirements and procedures.

“We don’t have plans to pass through codification because we can codify hardware, and that’s a resolution of the problem,” said Nazar Bigun, co-founder and CEO at NORDA Dynamics, the developer of the autonomous UAV piloting system.

Another option is to add a physical key, which can look like a flash drive, to a software solution to launch the entire program, said Oleksandr Barabash, CTO at Falcons, a miltech startup producing software and hardware for defense.

Manufacturers can also integrate their software into the products of other companies, such as, for example, integrating target recognition software into a partner’s drone. 

However, there are still challenges. Software requirements depend on the type of software used. If it's a complex system with classified information, it will require strict cybersecurity requirements, security protocols, and a prohibition on using open source or integrated development environments, Barabash explained.

Codification requires a separate approach, Denysuik agreed. Currently, the Ministry of Strategic Industries is working on improving the software codification procedure.

"Yes, we are in the process," replied Herman Smetanin, minister of strategic industries, in response to Counteroffensive.Pro's question. He declined to provide details about the ministry's plans.

How do the defense forces purchase software products?

Despite challenges, codified software can be purchased by brigades, or centrally through ministries. For example, the Defense Procurement Agency (DPA), which is responsible for ensuring the procurement of defense items, buys products that already contain software, such as information protection technology. The State Logistics Operator and MoD are responsible for the software supply.

The state can purchase software through open bidding via the government bidding site Prozorro or through closed bidding if programs are needed to process or store sensitive information, Yaroslav Kolosovych, press secretary at DPA told Counteroffensive.Pro.

Procurement can occur either as a program or as an annual product subscription. Even if manufacturers haven't received codification yet, they can legally work directly with brigades or local governments, which can also supply the army. 

However, brigades have limited budgets on which they can buy military goods and what is most practical for them. This is where Farsight Vision, NORDA Dynamics, and others provide assistance. Yaremchuk of Farsight Vision also plans to seek codification for FSV Mapper, a special drone device used to scan territory on the ground.

Currently, this startup is collecting user feedback to get military confirmation of the product’s effectiveness. This process began in January, and document submission for codification is planned for early May. Overall, the document collection process has been ongoing since November 2024.

BUSINESS LUNCH TOPICS: What our reporting shows!

1. More than 1,500 applications for military exports have been approved since 2022 

The State Service for Export Control (SSEC) has approved 1,509 applications for the export of military and dual-use goods over the past three years, the agency told Counteroffensive.Pro. 

At the same time, 603 applications were denied.

Based on the data, the number of approved applications increased from 393 in 2022 to 517 in 2024. But this number is still lower than the year before the full-scale war, which saw 974 applications approved. 

Here’s a complete breakdown of the export application numbers:

2. How NATO startups plan to combat guided aerial bombs

French firm Alta Ares won the 15th NATO Innovation Challenge hackathon, which concluded in Poland on April 3. The company has developed an artificial intelligence-based solution for recognizing and detecting air threats in real time.

The hackathon focused on finding effective ways to counter Russian gliders and guided aerial bombs in Russia’s war against Ukraine. Ukraine participated in the NATO hackathon for the first time this year. The best projects were selected by a panel of experts and military personnel from NATO countries and Ukraine, Stanislas Walch, COO of Alta Ares, told Counteroffensive.Pro. 

“We plan to conduct trials or experiments in real-life conditions in Ukraine in the coming months and are actively seeking opportunities for joint development with Ukrainian companies,” said Walch.  

The hackathon featured technological developments from 40 companies. Second place went to Tytan Technologies GmbH from Germany for its target interception system. French company ATREYD came in third for its innovative system of predicting trajectories and intercepting targets using a swarm of drones.

3. Ukrainian engineers will develop ground drones for evacuation purposes

Ukrainian engineers are working on ground drones designed for medical evacuation purposes. The Ukrainian Council of Defence Industry is leading the process in cooperation with a deputy of the Ukrainian military’s Commander-in-Chief. 

"We have found an investor to finance R&D projects in this area. There will be a series of meetings where we will raise questions about the quality and requirements of these products. There are already certain technical specifications that we are also collaborating on,” Maksym Vasylchenko, a board member of the council, told Counteroffensive.Pro during a briefing held by the Ministry of Strategic Industries.

Currently, one of the key problems with ground evacuation drones is their design. They were primarily designed for logistics, not evacuation. This requires improvements in design, especially for soldiers' protection. These problems are detailed in one of our previous issues. 

4. Liquido VC/ Startup Wise Guys establish new Nordic-focused venture fund for defense and dual-use startups

Estonian-based venture fund Startup Wise Guys and Finland-based Liquido VC announced the new VC New Frontier Fund I. It will invest in the Nordics, the Baltics, Poland, Romania, and Ukraine. The headquarters will be in Estonia. 

The venture fund plans to invest in: 

• Cyber;

• Robotics; and

• Defense, dual-use and single-use products.

For Ukrainian startups, it is crucial to be registered abroad, Farid Singh, Startup Wise Guys general partner and deal sourcing & execution, told Counteroffensive.Pro. The fund will also help Ukrainian teams register intellectual property outside of Ukraine, added Jussi Muurikainen, founder of Liquido VC.

Currently, the new fund is in the fundraising stage. There will be a bigger public launch in the fall. 

“European nations, most of them, not all, but most of them took after the Cold War ended the peace dividend to its fullest and so they have neglected their defensive capabilities,” explained one of the funds’ advisors Pekka Toveri, a 38 year veteran of the Finnish military, and now an MEP. “Especially Nordics, we have quite [a] unique operational environment which requires different kinds of solutions which wouldn't necessarily work somewhere else.”

One of the main priorities for the fund will be investment in a long-term project that continues even after the war in Ukraine ends, Singh emphasized.

“We want people to understand that this is something that needs to be done for the next 20, 30, or 40 years. This is super, super important for us,” said Singh.

Ukrainian orders/legislation we’re tracking: 

By: Oksana Zabolotna

Creation of the Cyber Forces of the Armed Forces of Ukraine

Draft Law: № 12349 dated 19.12.2024

Why it is important:

The project aims to achieve compliance with NATO standards in the field of cyber defense. This will ensure that Ukraine uses the latest defense technologies, fosters interoperability with allied forces, and improves its defense capabilities.

Link to Defense Tech:

The creation of the Cyber Forces will contribute to the development and implementation of advanced cyber defense capabilities, which are a crucial component of modern military technology. The country will integrate cutting-edge cybersecurity and electronic warfare technologies to protect national security against digital threats.  

People to Know: The draft law awaits consideration in the first reading. To be adopted in the first reading, 226 votes of people's deputies are required.

Stage: awaiting consideration in the first reading, opinion of the Committee on National Security, Defense, and Intelligence provided.

Initiator: a group of 30 MPs from the ‘Servant of the People’ factions led by Oleksandr Fedienko

Proposals:

• Creation of a new military command body - the Cyber Forces of the Armed Forces of Ukraine.

• Cyber Forces will focus on special intelligence, cyber deterrence and conduct operations in the electromagnetic spectrum and cyberspace.

• The Cyber Forces of the Armed Forces of Ukraine will operate under the direct leadership of the Commander-in-Chief of the Armed Forces of Ukraine. All political activities of the Armed Forces are coordinated by the Supreme Commander-in-Chief - the President of Ukraine.

• Creation of operational reserve. Reservists will be involved in Cyber Forces' tasks in peacetime and during the war (and other special periods).

ON THE MOVE: Professional movement, promotions and industry news.

Know someone in the defense tech space who has made a professional move? Drop us a line at [email protected]! 

• Benjamin Tallis has joined Helsing, an AI defense company, as senior manager for thought leadership. He also remains chair of the board of the think tank Democratic Strategy Initiative.

• Ivan Afonin has become a military career consultant and external advisor at CORE Team, a recruitment partner for miltech companies and startups. Previously, he worked as an HR director at the state-run concern Ukroboronprom.

• Raphael Hagenbuch has become the new chief of staff at Quantum Systems, which develops multi-sensor drones. He previously was the head of business development & strategic planning at Delivery Hero, a goods delivery service.

• Marcin Sobieraj has become a country manager at the Polish office of Milrem Robotics, a developer of robotics and autonomous systems. Earlier, he worked at Obrum, part of the Polish Armaments Group and a developer of military engineering vehicles and digital training systems.

30 SECOND ELEVATOR PITCH:

Xnet is a Ukrainian startup that creates kinetic anti-drone solutions. Their flagship product is the XN-12: a 12-gauge net gun that will down drones. The net consists of lead elements bonded with Kevlar. 

The ammunition is easy to integrate into other turrets, and developers have already made products in 5 different calibers. They plan to install it on vehicles.

"Our solutions can be used from existing platforms, which allows us to quickly protect a large number of vehicles and personnel," says Yurii, CEO of Xnet.

Currently, Xnet is raising $85,000 in angel investment to scale XN-12 production and finish autonomous AI-powered turret integration.

MUST READS:

• Ukraine has developed a drone to intercept Russian Shahed drones. The drone's maximum speed is 200 km/h, and its maximum flight altitude is 5 km, although detailed specifications have not been disclosed. The new drone has already destroyed more than 20 Shahed drones, according to developers.

• Russia has started using a new drone interceptor. The body is made on a 3D printer and equipped with a lightweight launcher that allows one soldier to operate it.

• Russia has begun launching drones across Ukraine that scatter explosive devices. This creates significant risks, as the time of explosion of these munitions is unknown, and they can be used to attack any region.

• Ukraine’s Unmanned Systems Forces (USF) has unveiled the Alligator-9 sea drone. It’s a universal platform able to carry various weapons, including the Tryzub 90 laser system and smaller drones (or torpedoes).

The USF has also presented a laser system called the Tryzub, which is said to be capable of destroying bombs, attack drones, and missiles at a distance of up to 3,000 meters. The laser weapon can also purportedly take out aircraft, reconnaissance drones, and helicopters at a distance of up to 5,000 meters.

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