Build in Ukraine, Build with Ukraine, Buy from Ukraine: an explainer on exports from UCDI

This week saw several key developments related to the export of Ukrainian defence products. On 8 February, President Volodymyr Zelensky announced the launch of the process, and on 10 February approved the line-up of an interagency commission that will oversee defence exports. Finally, on 12 February, NSDC Secretary Rustem Umerov said the commission had held its first meeting and issued initial permits for the export of controlled goods.

In public debate, however, “exports” often refers not only to direct deliveries of finished products abroad but also to a broader range of international cooperation formats, including joint production and collaboration using Ukrainian technologies and licences in partner countries. Three main models are typically discussed: Build in Ukraine, Build with Ukraine, and Buy from Ukraine.

The Ukrainian Council of Defence Industry has prepared an explainer outlining the differences between these approaches and how manufacturers and international partners should navigate the terminology.

Build in Ukraine: localisation of production in Ukraine

Build in Ukraine is a model in which foreign defence companies establish production directly in Ukraine. This includes setting up or expanding local facilities, joint ventures, repair and service capabilities, as well as R&D and rapid prototyping on Ukrainian territory.

Key features of Build in Ukraine:

• Production is located in Ukraine;
• Ukrainian enterprises are integrated into partners’ production processes and infrastructure;
• The result is localised manufacturing, repair or service with the shortest possible supply cycle for Ukraine’s needs.

Build with Ukraine: joint production abroad using Ukrainian technology and partners

Build with Ukraine refers to establishing production lines in partner countries, exporting manufacturing technologies and integrating Ukrainian expertise into allied supply chains, as well as joint projects in co-production or JV formats with Ukrainian companies.

Key features of Build with Ukraine:

• Production or part of it is deployed in a partner country;
• Ukrainian technological expertise, engineering experience and production capabilities are used, while intellectual property rights remain in Ukraine;
• The model focuses on long-term integration of Ukrainian solutions into allied supply chains.

Buy from Ukraine: direct export and deliveries of Ukrainian products

Buy from Ukraine is the model of direct deliveries of Ukrainian defence products to a foreign customer. In practice, it involves export procedures, compliance, licensing, export control requirements and end-user verification.

Key features of Buy from Ukraine:

• The product is manufactured in Ukraine and delivered abroad under contract;
• Export control, licensing and compliance procedures apply;
• Contracting models may include direct agreements with manufacturers or intergovernmental procurement mechanisms, depending on the market and customer procedures.

For Ukrainian manufacturers, the difference between the three approaches determines:

• Where production capacities are located and how investments are planned;
• Which permits are required and expected timelines;
• Who the customer is, who signs the contract, and how responsibility for delivery, service and end-user control is structured.

For international partners, the issue is about procedural transparency, predictable timelines and selecting the right cooperation format — from localisation in Ukraine to co-production abroad or direct procurement of Ukrainian products.

UCDI CEO Ihor Fedirko summarises: “Build in Ukraine means localisation of production, service and R&D in Ukraine. Build with Ukraine means co-production and integration of Ukrainian technologies and engineering expertise into partners’ production chains, including abroad. Buy from Ukraine means direct deliveries of finished products from Ukraine with full export control, licensing and end-user verification.”

What else to know about defence exports

According to a manufacturer survey conducted by the Ukrainian Council of Defence Industry as of July 2025:

• 78% of respondents had assessed potential export markets;
• 94.4% expressed interest in export activity and viewed its potential impact as positive, provided security procedures are maintained.

Among the expected effects of opening exports, manufacturers most often cited:

• Lower domestic product costs through economies of scale;
• Increased production capacity by expanding facilities and output;
• Additional state budget revenues through taxes and duties;
• Easier access to international investment driven by growing interest from global partners.

To help companies prepare for international markets and reduce mistakes in the process, the Ukrainian Council of Defence Industry has launched an Export Support Office. It helps companies navigate export control requirements, documentation and negotiation preparation.

UCDI has also introduced Export Map — a practical roadmap for manufacturers covering everything from first contact to documentation, testing and certification, as well as licensing and compliance navigation.