Replace the value-based charge on co-production and technology transfer with partner states (currently 20% of value for finished goods and technologies, 30% for components, 20% on onward transfer of goods produced abroad with Ukrainian technology) with a security-based model: end-use and non-retransfer guarantees by the importing state, plus a pre-agreed re-transfer matrix (own armed forces / EU and NATO states / third countries: pre-cleared, conditional, prohibited). Any residual charge to be differentiated, paid on contract execution rather than on application, refundable on refusal, and zero for JV output delivered to the Armed Forces of Ukraine.
THE CHALLENGE
The charge must be paid upfront with the licence application, with no clear refund if the licence is refused. On a EUR 10 m project it adds EUR 2–3 m that no existing financing instrument or investment decision foresees. Components carry a higher rate than finished systems, penalising exactly the supply-chain integration Europe needs. A payment does not control end use; state guarantees do.
PROPOSED ACTION
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RESPONSIBLE STAKEHOLDERS
Government of Ukraine (Cabinet of Ministers; Ministry of Defence)
TIMELINE
100 days
TARGET
Amended procedure adopted; no payment required before a licensing decision; component rate not higher than finished-goods rate; JV output for the Armed Forces of Ukraine exempt; state-guarantee template signed by at least three partner states (incl. DE and at least one Baltic state) within 12 months.