The US is preparing to sell Ukraine something unusual: American-made missiles for its Soviet S-300 air-defense systems. The missiles, labeled "S-300 Clone" in the paperwork, are part of a $2.68 billion package that the State Department approved on 18 September, financed by European partners and unused US military aid, Defense Express reports.

Ukraine has plenty of Soviet-era S-300 launchers but not the missiles to feed them. Russia will not sell more, and an earlier Ukrainian attempt to build its own went nowhere, according to Defense Mirror.

Not a Soviet 5V55 replica

At the same time, the missile itself is not actually a "clone" or replica of the Soviet 5V55. According to Defense Express's own information, this is a new development with enhanced characteristics and a different, more modern targeting guidance principle.

At the same time, the American side did not disclose the index, characteristics, or manufacturer of the missiles mentioned in the State Department's statement.

In September 2024, then-US Defense Secretary Lloyd Austin announced at the Ramstein contact group that Washington, in partnership with several European companies, was working with Ukraine to "design and build a substitute" for the Soviet S-300 and the R-27 air-to-air missile used by fighter jets, Newsweek reports. He never spelled out what that substitute would be.

Anti-radar missile project from the 1950s

The package will also include GAM-67. As for the GAM-67, despite the existence of an unrealized American anti-radar missile project from the 1950s, this is also a new development. It is intended for medium-range systems, both existing ones, including Soviet ones, and future ones.

The package also provides for modernization and maintenance: spare parts, consumables, and accessories, support during repair and return, software, transportation support, engineering, technical, and logistical services from the US government and contractors, and other related elements of logistical and program support.

Ukraine's arms industry wants the government to scrap a steep fee on weapons exports, warning it undercuts their prices just as Europe's defense market opens, RBC-Ukraine reported. The same fee has opened a second fight in Kyiv, where parliament this week declined to turn its revenue into money for the army.

Russia's war on Ukraine has pushed Europe into rearming, and Ukraine's battle-tested arms makers are among the few that can deliver at scale right now—an opening that domestic red tape could blunt, handing the advantage to competitors just as the market grows.

A €60 billion European window—and a fee in the way

The push comes as Europe opens a major market for Ukrainian weapons. The EU's €90 billion Ukraine Support Loan for 2026-2027 reserves €60 billion for defense purchases, and partners increasingly want weapons built on their own soil. International partners report more than 200 cooperation approaches to Ukrainian firms still without a decision, according to the industry's press release. Producers link the fee fix to Build with Ukraine, a co-production push they consider strategically significant.

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Parliament won't route the money to the army

On 15 September, the Verkhovna Rada—Ukraine's parliament—rejected a bill in first reading that would have sent fee revenue collected from 1 August 2026 into a special budget fund for the Defense Ministry, half for buying, modernizing, and repairing weapons, half for soldiers' pay. The vote left the fee itself untouched, since it rests on the Cabinet resolution, and settled only that its revenue will not be earmarked for the army.

The fee producers want gone

The Ukrainian Council of Arms Manufacturers, joined by other defense and employer groups, prepared proposals to rework the July government resolution, No. 875. They want the fee—20% on finished goods and technologies, 30% on parts—cut to zero, or capped at 5%. Firms must also pay upfront, before any foreign payment lands, with no refund guaranteed if a deal collapses. A UAH 15 million (about $337,000) threshold shuts out the small test shipments new clients often begin with.

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The fee has drawn complaints since the resolution took effect in early July. Ihor Fedirko, the council's executive director, earlier said the 30-day review window was welcome but warned it could clog into a bureaucratic queue as staff leave the agencies running it. One of the associations behind the submission calls the 30% rate on parts prohibitive, since Europe is where Ukrainian firms would undercut Chinese suppliers on price.

Ukraine has swung from banning weapons sales abroad to courting foreign buyers, and its defense sector now ranks among the country's fastest-growing industries. Wartime certification to NATO standards is turning that output into something European militaries can actually buy.