Lifecycle of Ammunition:
Manufacturing Enterprises

The private defense industry sector needs uniform rules of the game for all market participants and targeted regulation of the industry.
Most manufacturers of explosives and ammunition state that unified rules of the game are needed for both state and private players, along with targeted industry regulation.
In July 2025, Cabinet of Ministers Resolution No. 763, which initiated an experimental regulatory procedure for the production, procurement, and supply of ammunition, will expire.
Following its implementation, manufacturers of explosives and ammunition insist on updated approaches that consider real market conditions and the growing role of private enterprises.
Stage: 1


Current State
At this stage, stakeholders initiate the concept of creating a new enterprise or launching ammunition production. Ukrainian legislation does not regulate a separate pre-project planning stage for defence industry enterprises, so all preparatory activities (market research, partner engagement, technology selection) occur without regulatory guidance. The absence of state support at this stage undermines the effective formation of industrial clusters and project-based cooperation.
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Stage: 2


Current State
Company registration is carried out according to the Civil Code of Ukraine, the Law of Ukraine "On State Registration of Legal Entities, Sole Proprietors and Public Organizations," and the Law "On Limited Liability Companies."
At this stage, the legal form, economic activity codes, location, and ownership structure are defined. However, current legislation does not provide a specific registration regime for enterprises intending to engage in ammunition and explosive material production.
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Stage: 3


Current State
Currently, the status of an ammunition manufacturer is granted temporarily under Resolution of the Cabinet of Ministers of Ukraine No. 763, which is experimental and only valid during martial law. The absence of a permanent regulatory framework creates legal uncertainty for companies and their partners.
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Stage: 4


Current State
The process of acquiring land for the purposes of ammunition/explosives production, storage, disposal, or testing requires changes to the land's designated purpose according to the Land Code of Ukraine and the Law "On State Registration of Property Rights to Immovable Property and Their Encumbrances."
This change is a separate administrative procedure that includes:
- preparation of urban planning documentation,
- development of land management technical documentation,
- approvals from various authorities (architecture, StateGeoCadastre, local council or administration),
- public hearings (in certain cases),
- amendments to the State Land Cadastre.
This multi-step and lengthy process creates barriers to the timely launch of defense production, even under martial law or emergency conditions.
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Stage: 5


Current State
Currently, location requirements are defined by various industry-specific regulations, most of which are not adapted to the specifics of ammunition. Security requirements are often not integrated, and permits for storage and production are issued by different authorities.
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Stage: 6


Current State
Current legislation (the Law of Ukraine "On State Secrets" and SSU procedures) does not account for the production-specific needs of ammunition enterprises. The procedures are lengthy, and the criteria for obtaining access permits are non-transparent.
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Stage: 7


Current State
The procurement of explosives, precursors, initiation devices, and other sensitive components for ammunition production is regulated by various acts issued by the Ministry of Internal Affairs, State Labor Service, State Export Control Service, and tax regulations. Procedures are scattered, and applications and approvals are handled through separate channels. There is no unified procurement process within or outside the framework of the state defense order.
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Stage: 8


Current State
Transportation of explosives, precursors, and military-purpose products requires permits from the Ministry of Internal Affairs and route approvals. There is no unified document that sets out clear rules and timelines for obtaining transportation permits, resulting in regulatory conflicts.
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Stage: 9


Current State
Operations involving the storage, movement, and testing of substances, materials, and ammunition are governed by various fragmented regulations — from occupational safety norms (Regulatory and legal acts on labor protection) to Ministry of Internal Affairs orders. Inventory is often maintained manually, and oversight of testing processes is inconsistent. There are no unified regulation outlining procedures for all internal manufacturing operations.
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Stage: 10


Current State
The handling of explosive waste is governed by environmental and industrial legislation. The absence of specialized procedures for ammunition manufacturers leads to inconsistent (double) interpretations regarding classification, accounting, temporary storage, and disposal.
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Stage: 11


Current State
Existing requirements for technical support of the product are scattered and do not reflect the specific nature of military-purpose products. There is no approved list of mandatory design, operational, and process documentation required to accompany ammunition through all production, transport, storage, and transfer stages.
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Stage: 12


Current State
Activities related to the storage and accounting of finished military-purpose products fall under the regulations of the Ministry of Internal Affairs, State Labor Service, and internal instructions of the Ministry of Defense. There is no unified regulation defining the procedures for documentation, transportation, movement, and inventory of finished goods at the manufacturer’s storage sites. The fragmentation of applicable rules results in procedural confusion.
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Stage: 13


Current State
Codification of military-purpose products is a mandatory step for assigning a unique identification number under the national or NATO system (NSN). The procedure is centralized, often paper-based, and multi-layered, creating delays in timely product registration. There is no mechanism for preliminary codification or a digital portal for submitting technical specifications. The current process does not support flexible handling of pilot batches or temporary product lines.
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Stage: 14


Current State
Mechanisms for supplying finished products to the Armed Forces of Ukraine, other defense units, state bodies, and subdivisions remain partially regulated. Contracting is governed by multiple legal acts and Ministry of Defense regulations, but there is still no unified system that accounts for deliveries under the State Defense Order (SDO) as well as through charitable, donor, or foreign assistance programs.
Furthermore, collaboration of manufacturers with research institutions, private defense firms, expert communities, and international partners through pilot deliveries, testing, or joint R&D is not clearly regulated.
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Stage: 15


Current State
Acceptance of military-purpose products is performed by representatives of the Ministry of Defense according to outdated regulations that do not reflect current forms of cooperation with private manufacturers. There is no unified procedure for interaction with military representatives, nor clarity on acceptance criteria, reporting formats, or the status of such representatives, which leads to conflicts. Additionally, a significant portion of products is manufactured without initial Ministry of Defense technical specifications or within pilot frameworks, which prevents official acceptance or approval by representatives.
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Stage: 16


Current State
Safety at facilities manufacturing explosives and ammunition is governed by numerous regulations (Regulatory and legal acts on labor protection, MIA, State Emergency Service of Ukraine, State Labor Service instructions), which do not form a coherent system and often conflict with each other. There is no unified legal framework integrating fire, industrial, ecological, and physical safety requirements adapted to wartime conditions.
There are no specific rules for dual-use or mobile production units. Additionally, issues related to inspection frequency, enterprise management liability, and coordination with regulatory bodies remain underregulated.
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Stage: 17


Current State
Companies involved in the production, storage, transportation, disposal, and sale of ammunition and explosives are subject to various regulations, including MIA Instruction No. 622, Regulatory and legal acts on labor protection 0.00-6.04-06, tax laws, and export control requirements. However, there is no unified reporting format for different government agencies, submission timelines for similar data are inconsistent, often duplicated, or contradictory. Recordkeeping is mostly manual and not integrated with national information systems. There is no single digital interface for manufacturers to submit reports to relevant authorities (Ministry of Defense, MIA, State Tax Service, SSECU, etc.).
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Stage: 18


Current State
There is no specialized procedure or requirements for the safe liquidation of enterprises engaged in explosives production. This creates potential risks to the environment, third parties, and for the accountability of leftover materials.
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