Legal Expertise in the Defence Sector

Ukraine’s defense industry operates in an environment of heightened legal, regulatory, and operational risk. Defense-related transactions range from cross-border procurement of military and dual-use products to more complex cooperation models, including component supply, joint production, manufacturing localization, technology transfer, and investment-driven partnerships. Such arrangements involve a combination of international trade law, export control regimes, sanctions compliance, government regulation, and sector-specific requirements applicable to military and dual-use products, and frequently intersect with foreign investment and corporate structuring considerations.

Jurvneshservice provides legal advisory and transactional support to Ukrainian defense manufacturers and suppliers, as well as to foreign companies purchasing military products, supplying components, or participating in joint manufacturing and investment projects in Ukraine. Our work is particularly relevant for cross-border defense projects involving foreign buyers, strategic partners, intermediaries, and financing institutions, where contractual certainty, compliance, and balanced risk allocation are essential to operational viability and long-term enforceability.

Defense-sector contracts require a level of legal precision that exceeds standard commercial agreements. For foreign companies engaged in procurement, component supply, or joint production in Ukraine, the contractual structure directly affects regulatory compliance, enforceability, pricing, and operational continuity.

Jurvneshservice provides comprehensive legal review and structuring of defense-related contracts, including foreign economic contracts, with a focus on alignment with Ukrainian law, applicable foreign law, international trade regulations, export control rules, and sanctions regimes. We thoroughly review provisions on the scope of supply, licensing obligations, if any, payment mechanisms, governing law, dispute resolution, and early termination. A poorly drafted contract may lead to delivery disruptions, regulatory exposure, unenforceable remedies, or even disputes requiring international commercial arbitration.

Defense supply contracts typically form part of broader procurement or production frameworks rather than isolated purchase-and-delivery transactions. These frameworks may include phased deliveries, long-term supply commitments, licensing and security requirements, financing arrangements, and, in some cases, integration into joint production or offset structures governed by corporate and investment documentation.

Jurvneshservice supports foreign companies by structuring defense supply contracts in line with the project’s commercial and operational model—whether direct procurement of finished products, supply of critical components, or participation in production chains in Ukraine.

Provisions on delivery, acceptance, and performance shall be carefully drafted in the defense contracts, as they are not standard commercial transactions. The defense contracts provide separate technical specifications as an integral part of the contract. It is advisable to follow special acceptance procedures to avoid the effect of payment obligations and liability.

We advise on delivery terms (including INCOTERMS), transfer of risk, customs clearance, export control approvals, and acceptance testing procedures within properly structured foreign economic contracts. Particular attention is paid to how acceptance is documented and legally confirmed, as acceptance certificates, inspection reports, and related records often determine whether payment obligations arise and whether subsequent claims are contractually limited or excluded.

Our analysis also addresses liability allocation in cases of delayed delivery, partial performance, technical non-conformity, or failure to meet end-user or governmental requirements. By carefully structuring these provisions, we help foreign counterparties manage operational risk, avoid unintended liability, and preserve enforceable remedies.

Performance security mechanisms are central to defense-related contracts. Foreign purchasers, investors, and financing institutions typically require contractual safeguards ensuring timely delivery, technical compliance, and continuity of supply.

We assist in structuring and negotiating performance guarantees, liquidated damages, penalties, and compensation mechanisms, ensuring their enforceability under applicable law and proportionality to the contract value and commercial risk profile. 

Due to the ongoing war, force majeure clauses are of particular importance in defense contracts involving Ukraine.

Well-drafted force majeure provisions are essential for contracts involving long production cycles, joint manufacturing arrangements, or reliance on cross-border logistics and governmental approvals.

We focus on precise drafting of force majeure provisions, including the definition of qualifying events, notification requirements, evidentiary standards, and interaction with export control or sanctions-related restrictions. In cross-border defense contracts, generic force majeure language is often insufficient and may fail to provide effective protection, particularly when disputes escalate to international arbitration.

Our role is to ensure that force majeure clauses reflect the operational realities of the defense sector and are aligned with the chosen governing law and international practice.

The effect of a force majeure event is determined primarily by the governing law of the contract and the way the clause is drafted. Occurred force majeure may lead to a temporary suspension of performance, or to a release from liability for delay or non-performance, to an adjustment of contractual deadlines, or, in some cases, a right to terminate the agreement without penalties. Thus, foreign buyers and partners should understand these consequences when planning supply continuity and managing financial exposure. 

Defense contracts involve elevated risk profiles that require systematic assessment before execution. For foreign companies, risks may arise from regulatory compliance, enforceability of remedies, currency and payment restrictions, export licensing, or the interaction between contractual obligations and public law requirements.

We identify key risk areas, propose alternative contractual formulations, and adapt contract structures to the actual performance environment. This approach applies to procurement contracts, component supply arrangements, and joint production or investment-driven projects.

Jurvneshservice combines deep expertise in contract law, international trade, and dispute resolution with practical experience in defense-related transactions involving Ukrainian and foreign counterparties. We understand the commercial, regulatory, and compliance challenges that foreign companies face when entering the Ukrainian defense market as purchasers, suppliers, or strategic partners.

Our legal support is designed to protect investment value, ensure contractual enforceability, and provide legal certainty throughout the lifecycle of defense projects in Ukraine and across international markets, including effective dispute resolution and enforcement strategies where required.