Ukraine’s Defense Market: A Guide for Foreign Companies

Ukraine’s war for survival has created one of the world’s most urgent and uniquely demanding defense markets. For foreign companies, the door is open, but only partially. The need is vast: drones, weapons, protective gear, and battlefield technology are in constant demand. However, entry is not automatic. Success depends not only on the quality of products but also on navigating complex logistics, passing strict vetting, and aligning with Ukraine’s wartime priorities.

The opportunity is real— but it rewards only those who are serious, transparent, and committed. Ukraine’s defense procurement has rapidly professionalized since 2022, shifting toward NATO-oriented standards. One key step is codification: any weapon or equipment must have a NATO Stock Number (NSN) or equivalent national code to be officially procured. Smart companies should start the codification process early. Securing an NSN or Ukrainian registration code ensures the item can be referenced in contracts and tracked through supply chains.

Even abroad, Ukrainian codification can serve as a quality marker. While not a formal NSN, it signals the product is battlefield-tested—a valuable credential for international buyers. Before winning a contract, foreign companies must be verified as eligible suppliers to Ukraine’s Defense Ministry. The country is shifting from ad hoc deals toward a structured whitelist system, coordinated by the Defense Procurement Agency (DPA). The DPA operates a single Request for Proposal process when relevant needs arise.

Localization is now non-negotiable, both strategically and politically. Ukraine needs secure wartime supply lines and seeks technology transfer to build a resilient defense industry. Officials have made it clear: companies looking only to ‘export and forget’ will be replaced by those that commit locally. Foreign manufacturers should explore options to localize parts of their supply chain. This might include producing components in Ukraine, licensing local factories, or training Ukrainian staff. These steps not only strengthen ties with Kyiv but may also unlock incentives such as special tax conditions or co-financing.

At a recent defense industry forum, Zelensky reiterated his goal that every advanced system used by the Armed Forces should eventually include Ukrainian-made components or support. Companies must align with this vision. In conclusion, Ukraine’s defense market is not just a place to sell—it is a place to stand. The country is fighting for its survival and rebuilding its defense industry at the same time. It welcomes foreign cooperation—but on its own terms: transparency, localization, wartime readiness, and shared strategic vision.