The United Kingdom, the Netherlands, Germany and Denmark are open to Ukrainian Defence Tech companies, but each jurisdiction has its own rules of entry, and the cost of getting them wrong is high. Last week, Ukrainian law firm EVERLEGAL, together with Tech Forces of Ukraine and international partners Pinsent Masons and Poul Schmith/Kammeradvokaten, hosted the webinar "Ukrainian Defence Tech Expansion into Europe: United Kingdom, Netherlands, Germany and Denmark". More than 50 participants examined the conditions for entering four European markets: FDI screening, export controls and financing.
Regulatory overview by jurisdiction
The United Kingdom operates the most flexible regulatory regime of the four jurisdictions. Ukrainian ownership is permitted without restriction, and no specific permits are required for basic operational activity in the defence industry. The Ministry of Defence has established a dedicated unit to assist Ukrainian companies entering the British market. R&D grants are fully accessible to companies with Ukrainian ownership. NATO Secret-level clearance takes 12–13 months even for British nationals, and Ukrainian companies should factor this into their planning from the outset.
Denmark formally has the longest list of permits, covering establishment, production and export, with additional permits required if more than 20% of board members are foreign nationals or if the managing director is not a Danish citizen. In practice, all permits are processed within weeks due to political prioritisation. At the time of the webinar, 5–8 Ukrainian defence companies were already operating in Denmark. FDI screening takes 12 weeks.
In the Netherlands, FDI screening is triggered when a foreign investor establishes a joint structure involving sensitive technologies, military goods or dual-use products. The review period is 8 weeks. A mandatory prerequisite for any transaction: sanctions screening of all parties.
Germany has the lowest threshold for triggering screening: for defence sector companies, it applies from a 10% shareholding. The standard operating vehicle, a GmbH, is typically ready for operation within 4–6 weeks. Despite the formal rigour of the regime, Ukrainian investors currently benefit from political goodwill, and the number of German-Ukrainian joint ventures in the defence sector continues to grow.
Corporate structure and export controls
Speakers from all four jurisdictions recommend the same model: Holdco + Opco. R&D is best kept in Ukraine, as European partners are particularly interested in accessing Ukrainian battlefield-tested developments. Manufacturing and export licensing functions are placed in a separate legal entity within the EU. A critical point: export controls apply not only to the physical movement of goods, but also to the transfer of technology by electronic means, including e-mail, cloud platforms and remote access.
Defence sector investment
ESG restrictions on defence sector investment are being formally lifted: the UK's Financial Conduct Authority (FCA) has confirmed that such investments are acceptable under ESG frameworks. Goldman Sachs and Morgan Stanley are actively seeking opportunities in the defence sector.
The discussion brought together legal practitioners from four jurisdictions:
- Andrew Brydon, Partner & Global Defence Lead, Pinsent Masons (UK);
- Jeroen Schouten, Partner, Pinsent Masons (Netherlands);
- Anton Sadykov, Senior Associate, Pinsent Masons (Germany);
- Tomas Ilsøe Andersen, Partner, Poul Schmith/Kammeradvokaten (Denmark).
The webinar was moderated by Yevheniy Deyneko, Managing Partner of EVERLEGAL and Co-Head of the Defence Tech Practice. The firm advises Ukrainian companies on the establishment and structuring of Defence Tech businesses in Ukraine and abroad.
For further details about the event, visit the EVERLEGAL website.
About EVERLEGAL
EVERLEGAL is an independent Ukrainian law firm with a sectoral focus. Founded in 2015, the firm brings together 50 lawyers and ranks among the top 10 law firms in Ukraine. The firm's team is a synergistic combination of professionals with expertise in transactional work, international arbitration and dispute resolution, with both international and local experience.
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