The defense industry is one of the most specific and complex areas where legal services require not only deep knowledge in civil, tax, antitrust law, and public procurement, but also an understanding of many technical and economic aspects. The peculiar nature of this industry is created by numerous subordinate legal acts, internal orders of the Ministry of Defense of Ukraine (often known only to the Ministry itself), and customary law of military units and defense customers.
This direction of legal work existed even before the start of full-scale invasion, as there was a constant need in the defense sector, particularly for fast-moving goods: food products, material support, fuel, and so on. However, with the start of full-scale war, the Miltech direction and defense procurement significantly expanded. Budget expenditures for security and defense needs increased from UAH 121.5 billion in 2021 to UAH 2.23 trillion in 2025. The state has moved to an active stage of arms and military equipment procurement, and businesses are developing new developments for this sector. These factors have led to the full formation of a new legal practice – supporting companies working in this industry.
What this practice is about
Undoubtedly, the key aspect of a lawyer’s work in the Miltech and defense procurement sector is legal support for the conclusion and execution of defense contracts. Companies operating in the defense sector often face difficulties in fulfilling contract terms: delays in the supply of components, changes in funding volumes, or other significant changes in circumstances due to the state of war and global political processes.
Currently, business rules in this market require entrepreneurs to be prepared for a number of challenges, including:
- increased control by financial monitoring services of banks and the State Audit Service of Ukraine;
- increased attention from the media and activists (reputational risks);
- numerous criminal proceedings; “non-market” punitive sanctions;
- difficulties in aligning prices for goods with market standards;
- payment delays or reduced funding from the state customer;
- unfriendly actions by competitors;
- lack of forecasted state orders and capacity utilization.
Legal support in this context is a comprehensive approach to managing these risks and minimizing their negative impact on the client. Through detailed analysis and proper legal support, we provide not only protection from potential threats but also opportunities for stable and secure project implementation that meets all legal requirements and international standards.
What else lawyers in the defense industry work on
An extremely important part of legal support in the defense industry today is supporting businesses developing advanced defense technologies. Currently, there is a demand from businesses for the codification of weapons and military equipment (obtaining NATO code), which requires special knowledge and skills in the field of defense technologies and IT.
The mobilization policy has created a high demand from businesses for obtaining the status of a critically important enterprise and employee protection. Currently, supporting the reservation procedure in the defense industry practically involves qualitatively preparing the necessary document package and the ability to pitch the development for presentation to the relevant commission.
Additionally, a significant challenge for the defense industry is attracting investments for the development of advanced technologies.
For law firms, this means the need for specialized knowledge that enables them to support investment projects from capital attraction to control over their implementation. Working with investors (mostly foreign companies) requires additional knowledge in financial law and the ability to work with international financial instruments.
Intellectual property is another important aspect of legal support in the Miltech field. Defense enterprises are constantly working on developing new technologies, and protecting intellectual property is an integral part. Lawyers assist with patent registration, technology licensing, partnership agreements, and prevent unauthorized use of developments. This allows businesses to successfully operate in the market of advanced defense technologies, particularly in the field of international partnerships.
The future of this practice
In general, legal companies not only create specialized practices to support enterprises in the Miltech and defense sectors but also actively cooperate with defense clusters and associations. This expands the client base and creates new opportunities for law firms.
We believe that after the end of hostilities, the Miltech practice will continue to develop, but will be more focused on external economic contracts, international defense procurement, and humanitarian demining. Most NATO countries have already turned to Ukrainian manufacturers for partnership or arms supplies. Ukrainian manufacturers are ready and expect the opening of exports.
With the development of this industry, there will be an increasing demand for highly qualified legal professionals capable of providing legal support in these areas.