Yuna Potomkina moderated the discussion on challenges in the defence sector at the III UBA's Investment Forum
Asters' Partner Yuna Potomkina moderated the session "Challenges and innovations in defence: Ukraine's integration into the European defence-industrial landscape" at the III Investment Forum of the Ukrainian Bar Association (UBA).
Opening the discussion, she stated: “Ukraine has no time for gradual changes. War conditions demand decisive and proactive action on all fronts. We must simultaneously develop the defence-industrial complex, create attractive investment opportunities in defence technologies, and accelerate European integration. Only a comprehensive approach will enable us not only to survive, but to become a full-fledged player in the European defence market.”
Roman Kostenko, Secretary of the Parliamentary Committee on National Security, Defence and Intelligence of Verkhovna Rada of Ukraine, emphasised that the key focus today is identifying real gaps in export legislation and addressing them promptly, particularly at the level of regulations. He paid particular attention to the issue of exporting Ukrainian technologies and products, emphasising the need for a balance between entering foreign markets and preserving domestic potential. At the same time, the speaker highlighted the importance of adequate legal protection for business and national interests, and a clear understanding of the benefits to the state from such exports.
Oleh Tsilvik, Acting Head of the State Export Control Service of Ukraine, noted that export is not currently prohibited, but each case is considered individually, taking into account national interests, the end user and the risks of sanctions being circumvented. He emphasised the need for a clear distinction between the transfer of technology and products, as well as a thorough analysis of supply chains, given Russia’s active use of intermediary networks in EU countries. The speaker addressed lawyers separately, highlighting the risks of unintentional technology transfer, including even in cases of minority participation by foreign investors. He also warned of severe liability for breaches of export controls, including substantial fines and criminal consequences for company management, and highlighted the key role of legal advisers in minimising these risks.
Kateryna Mykhalko, Managing Director at New Age Defence, noted that in the context of the defence sector’s European integration, it is important to clearly define what exactly is meant by this integration, as armaments standards and procurement procedures in EU and NATO countries differ significantly. She emphasised that it is currently technically and legally impossible to discuss direct EU procurement of Ukrainian weapons. The speaker emphasised that Europe has financial instruments to support the defence industry, but the key value lies not in the end product, but primarily in the combat experience and technologies of Ukrainians. In her view, the current system requires changes to regulate the export of experience and technology separately.
Martin Joesaar, Programme Officer of the EU Defence Innovation Office (Kyiv), emphasised that European support for the defence sector is moving from discussions to specific instruments, notably through the European Defence Fund, which finances R&D projects. Ukraine already has associate status, and negotiations are currently underway regarding full integration. The speaker highlighted the launch of fast-track, anti-bureaucratic mechanisms for funding innovation from submitting an application to receiving millions of euros for prototypes, provided European partners are involved. Particular emphasis was placed on grants for manufacturing (up to tens of millions of euros and 100% coverage), anti-drone systems and dual-use technologies. He urged Ukrainian companies to immediately seek partners and prepare for the EU’s new funding cycle.
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