The Ukrainian government is considering exporting arms and defense services this year, which could generate revenues worth several billion dollars. Dawyd Ałojan, Deputy Secretary of the National Security and Defense Council of Ukraine, reported that a concept for taxing these exports has also been adopted. The goal is to secure funds for the underfunded military. Meanwhile, the fourth anniversary of the full-scale Russian invasion is approaching, and the situation on the front remains tense.

Billion-Dollar Arms Export

After more than four years since the war began, Ukraine has received approval for its first defense product exports during the conflict. The state wartime licensing commission has approved the majority of 40 applications submitted by defense sector entities. Revenues this year could reach several billion dollars. Priority in exports is given to countries that have provided Kyiv with the greatest support.

Tax for the Military

To finance the underfunded military, the government in Kyiv is considering introducing a special tax on arms exports. According to senior defense official Dawyd Ałojan, such a levy could become an important revenue source for the fighting state. The decision is not yet final but indicates the strategic use of Ukraine's growing defense industry production capabilities.

Joint Ventures Instead of Sales

Ukraine's export strategy is based more on creating joint ventures with foreign partners than on selling finished products. This approach aims to provide Ukraine with both financial inflows and access to new technologies, which is considered more important than the sales themselves. This is intended to strengthen the long-term development capabilities of the domestic defense industry.

Morale Crisis and Losses

On the eve of the fourth anniversary of the Russian invasion, the situation on the front remains difficult. Correspondent Kavita Sharma reports from Kyiv on problems within the Ukrainian army, listing "desertion as a huge problem". Furthermore, First Lady of Ukraine Ołena Zełenska stated that 684 children have already been killed as a result of the war. Russian analysts also expect a Ukrainian attack on annexed Crimea in the coming days.

Decline in Russian Oil Exports

Despite the ongoing war, the Russian economy is under pressure. According to the International Energy Agency (IEA), Russian oil exports in January fell by 350 thousand barrels per day compared to December, mainly due to lower demand from India. The decline occurred despite record deliveries to China.

On the eve of the fourth anniversary of Russia's full-scale invasion of Ukraine, the Ukrainian government has revealed bold plans to commercialize its defense industry. For the first time since the war began, the state wartime licensing commission has approved the majority of 40 applications for arms and defense service exports. Dawyd Ałojan, Deputy Secretary of the National Security and Defense Council of Ukraine, reported that this year's export value could reach "several billion dollars". The strategic goal is not only to generate revenue but, above all, to secure funds to finance the underfunded military.

The Ukrainian defense industry, the heir to the powerful Soviet military-industrial complex, was severely impacted by the Russian invasion in 2022. Many key production facilities, located in the east and south of the country, fell under occupation or were destroyed. Reviving the sector has become a wartime priority, with the West supporting it by transferring licenses and technology.

To maximize benefits, Ukraine's export strategy will focus on creating joint ventures with foreign partners, especially those countries that have provided Kyiv with the greatest military support. „Access to new technologies is more important to us than the sale of finished products themselves” — Dawyd Ałojan – emphasized the official. Authorities are also considering introducing a special export tax that would directly feed the defense budget. 40 — export applications submitted by the defense industry

Meanwhile, the situation on the front remains critical. The approaching fourth anniversary of the invasion is a reminder of the enormous losses. Ołena Zełenska, First Lady of Ukraine, stated that 684 children have already been killed in the war. Correspondent Kavita Sharma from Kyiv reports that "desertion is a huge problem for the Ukrainian army", pointing to growing war fatigue among soldiers. Russian analysts also expect a Ukrainian attack on the symbolically important and annexed Crimea in the coming days.

[{"aspect": "Export volume", "before": "High (December 2025)", "after": "Lower by 350 thousand barrels/day"}, {"aspect": "Main recipient", "before": "India (high supplies)", "after": "China (record supplies)"}]

Between these strategic economic decisions and the grim reality of the front, the war continues. Economically, Russia is also feeling the effects of the conflict and sanctions. According to a report by the International Energy Agency (IEA), Russian oil exports in January 2026 fell by 350 thousand barrels per day compared to the previous month. This decline is attributed primarily to a significant reduction in purchases by India, despite deliveries to China reaching record levels. This is another example of how the war and associated international pressures are shaping global commodity markets.

Mentioned People

  • Dawyd Ałojan — Deputy Secretary of the National Security and Defense Council of Ukraine, source of information on arms export and tax plans.
  • Ołena Zełenska — First Lady of Ukraine, provided information about 684 children killed as a result of the war.
  • Kavita Sharma — Correspondent for n-tv in Kyiv, reporting on the situation at the front and the problem of desertion in the Ukrainian army.