Ukraine Reform Monitor No. 19

KYIV CONTEMPLATES BECOMING A DRONE EXPORTER
Earlier this Fall, Ukrainian President Volodymyr Zelenskyy announced a new – and ambitious – plan to manage excess defense technologies being produced in Ukraine. Under the new scheme, if Ukrainian defense firms produce more technology than required by the Ukrainian armed forces, the surplus could be exported to other countries. To this end, the Ukrainian government is establishing three platforms to handle sales of equipment: one for the U.S., another for Europe, and a third for other countries. Zelenskyy specifically pointed to naval drones and anti-tank weapons as possible export commodities, given that they are currently in surplus.

A key component of this new initiative is the soon-to-be-launched "Defence City" regulation, which will establish a specific economic ecosystem for defense producers and enable them to rapidly receive export permits. Still, there are still some parts of the plan that need to be ironed out, among them properly safeguarding intellectual property, deciding whether an export tax will be levied, and more accurate estimates of production capacity, so that Ukraine's military isn't disadvantaged. (Counteroffensive Pro, September 24, 2025)

THE MURKY STATUS OF MILITARY INNOVATION
Over the past couple of years, Ukraine's military has established research and development (R&D) units to help rapidly find solutions to real-world problems being encountered by drone pilots on the battlefield, and provide those inputs to drone manufacturers. "Many Ukrainian units have recognized the need for their own R&D departments and established them, tailoring technology directly to their operational needs," Counteroffensive Pro reports. This has allowed Ukrainian military brigades to rapidly field innovations in response to Russian tactics. However, the status of these units remains murky; they are not officially recognized within the military chain of command, and "there are no established positions for such groups." Rather, these units operate as "temporary, joint detachments" on the orders of individual battlefield commanders, specialists say.

That may soon change, however. In August, Ukraine's parliament, the Verkhovna Rada, passed a law on intellectual property strengthening protections for technology created during military service. That measure has now been signed by President Zelenskyy – providing a pathway for better regulating, and formalizing, the military development sector. (Counteroffensive Pro, November 4, 2025)

MAKING MILITARY SERVICE MORE ATTRACTIVE
Throughout the war, Ukrainian soldiers have been serving pursuant to what are essentially open-ended contracts, with no expiration date on their duration of duty. That, however, is on the verge of changing, with the country set to implement fixed-term contracts in addition to the existing conscription/mobilization system as a way of addressing recruitment problems. The new plan will allow both current soldiers and new recruits to take advantage of the new, time-delineated contracts, the terms for which could run anywhere between one to five years.

The measure is intended to fix an acute problem. As the conflict with Russia has dragged on, draft dodging among the population has risen, depriving the Army of the ability to discharge tired soldiers and bring in new ones. The fixed-term contracts are an effort to change that, by providing certainty regarding terms of service. They also come with added sweeteners, such as increased monthly payments, signing bonuses, and a more robust social security package. (New York Times, November 4, 2025)