Interfax-Ukraine
13:07 19.05.2025

Author TARAS TARASENKO

A New Mission for Veteran Soldiers: Why Ukraine Needs Its Own Private Military and Security Companies

12 min read
A New Mission for Veteran Soldiers: Why Ukraine Needs Its Own Private Military and Security Companies

 

Member of Parliament of Ukraine, Deputy Chairman of the Verkhovna Rada Committee on Social Policy and Protection of Veterans' Rights

 

Sooner or later, the war will come to an end, and Ukraine will face a major challenge: how to reintegrate hundreds of thousands of veterans with unique combat experience into peaceful civilian life. Draft law No. 13257 (registered by me together with Members of Parliament Sviatoslav Yurash, Mariia Mezentseva-Fedorenko, and others in May 2025) on the international activities of private legal entities in the military and security sectors proposes one of the key tools to address this issue—the legalization of Ukrainian private military companies (referred to in UN documents as Private Military and Security Companies, or PMSCs). This initiative not only allows us to utilize the valuable skills of our soldiers, but also provides them with dignified, high-skilled employment opportunities following demobilization.

Global Experience with PMSCs: From Blackwater to DynCorp

Global practice shows that Private Military and Security Companies (PMSCs) have long become an integral part of the modern security architecture. In conflict zones like Iraq and Afghanistan, a significant share of operational tasks has been carried out by contractors. For example, in 2016, one in every four armed Americans in those countries was a private contractor. Companies such as Blackwater (now Academi), DynCorp, and Triple Canopy employed thousands of U.S. military veterans to carry out missions ranging from facility protection and diplomatic escort to training local security forces.

Blackwater, for instance—founded by former U.S. Navy SEAL Erik Prince—grew rapidly during the wars in Afghanistan and Iraq. While in 2001 the company received less than $1 million from the U.S. government, by 2006 this figure had exceeded $600 million. The company operated its own training facilities, trained over 40,000 specialists annually, and deployed hundreds of contractors to conflict zones, effectively becoming a “private army” of the United States.

At the same time, the Blackwater's experience also exposed the risks associated with PMSCs. The company's reputation suffered a major blow after incidents involving civilian deaths in 2007. Those responsible were eventually held accountable, and the U.S. private security sector has since come under stricter regulation and oversight.

It’s not just the United States that relies on private companies in the military sphere. In the United Kingdom, Canada, France, Israel, and other countries, dozens of Private Military and Security Companies (PMSCs) operate, providing services such as security, logistics, intelligence, and military consulting. These companies are typically staffed by retired military personnel and highly qualified specialists.

UN missions, national governments, and even corporations are increasingly turning to private contractors for tasks such as facility protection and personnel training.

Importantly, in NATO and EU countries, the activities of PMSCs do not exist in a legal vacuum: they operate under licenses, are overseen by government agencies, and their personnel are subject to both national and international laws. For example, there is the Montreux Document—an intergovernmental initiative endorsed by 59 states—which outlines states’ responsibilities in regulating Private Military and Security Companies.

The industry has also developed the International Code of Conduct for Private Security Service Providers (ICoC), a standard adopted by responsible companies committed to ethical practices. The key lesson from Western experience is that proper regulation can transform PMSCs from potentially dangerous “mercenaries” into a legitimate and effective tool of national security and diplomacy.

Veterans as the Foundation for Ukrainian PMSCs

Our country has unprecedented human capital in the form of its veterans. As of now, 1.2 million veterans are officially registered, and after the war ends, this number could reach 5 to 6 million people (including their family members). Each of these warriors has gained experience that money cannot buy—combat skills, tactics, unit leadership, and proficiency with modern military equipment.

However, in peacetime, this potential may go untapped or even become a source of social challenges. Already, many demobilized soldiers are facing difficulties finding employment in their field—few employers are prepared to adapt to the needs of a former military commander. This creates risks of disappointment, social tension, and even a potential workforce outflow abroad.

In the explanatory note to a previous draft law, it was rightly stated that the demobilization of a large number of soldiers could lead to a range of negative consequences—many of which can be avoided by creating specialized companies in the military and security sectors. These companies will actually offer veterans a “second mission.” Those who defended the country with weapons in their hands could continue that mission in a new format—as instructors, consultants, or security professionals.

For example, an experienced Ukrainian Armed Forces sapper could become a demining instructor for a company operating in African countries; a former platoon commander could work as a security project manager, teaching Western partners how to counter Russian military tactics. This approach would not only benefit the world but also provide valuable, skilled employment for Ukrainian citizens.

New Opportunities for Business and Security Export

The legalization of PMSCs opens doors not only for veterans to work as contractors but also for entrepreneurs—including veterans themselves. Establishing a private security or military consulting firm is a pathway for former soldiers to transition “from warrior to entrepreneur.” The global private military and security services market is worth billions of dollars, and Ukrainian companies are well-positioned to claim their own niche.

Ukrainian specialists possess unique, battle-proven experience in countering Russian aggression—expertise that is in demand among countries seeking to strengthen their defense capabilities. Imagine a Ukrainian company contracted to train military instructors in a NATO partner country, provide maritime security against piracy, or advise foreign governments on cybersecurity. These are the real examples of “security export” that can generate revenue for Ukraine while enhancing its international standing.

Draft law No. 13257 directly envisions the creation of a developed market for military and security services, both within Ukraine and abroad.

In Ukraine, the following activities are permitted:

  • Demining and engineering operations, including the construction of military facilities, creation of mine-explosive barriers, and camouflage of strategic objects.
  • Security of defense-related facilities and protection of contractors involved in state defense procurements.
  • Military personnel training, including instruction, exercises, and the establishment of training bases.
  • Analytics and planning, such as tactical and strategic planning, consulting, and doctrine development.
  • Security consulting, logistics, informational and analytical support, and participation in conflict resolution efforts.
  • Paramedical assistance and evacuation, both military and civilian.
  • Training of civilians in emergency response and survival skills.

Abroad, the following additional activities are permitted:

  • Leasing of equipment and combat systems.
  • Protection of critical infrastructure, including airports, bridges, and other strategic sites.
  • Security of transportation, convoys, humanitarian missions, and international organizations.
  • Participation in peacekeeping missions, anti-piracy operations, maritime escort, and hostage rescue.
  • Personal security services for both Ukrainian and foreign individuals.

 

All these types of activities are only permitted with a special authorization (license) and a signed written contract. According to Article 6 of the draft law, services may be provided exclusively for profit and must be carried out under the supervision of an Authorized Government Body, which approves the procedure for admitting companies to international operations.

This means that new firms will emerge, and competition among them will drive improvements in service quality, while the state will receive additional tax revenues. Legal status will also open access to financing and insurance for such businesses—something currently impossible due to legal uncertainty. Entrepreneurs who previously could only establish security agencies or training centers will be able to develop fully-fledged private defense companies with the right to operate on the international market.

This is another step toward strengthening a wartime economy: instead of our veterans working for foreign PMSCs, we will be able to export their expertise through Ukrainian companies and generate income for the national budget. By legalizing this sector, the state will gain control over international contracts and ensure that activities are conducted transparently and in the national interest of Ukraine.

Why Legal Regulation Is Needed Now

Currently, Ukraine has no dedicated law that allows or regulates the activities of private legal entities in the military and security sectors—this field remains effectively outside the legal framework. However, the idea of legalizing military and security companies in Ukraine is not new. As early as 2020, the first legislative attempts were made to regulate military consulting activities:

  1. Draft Law No. 3005 (February 4, 2020)“On Military Consulting Activities” (initiated by MP Olha Vasylevska-Smahliuk). The goal was to facilitate veteran employment in the security sector, though the services were limited to operations abroad.
  2. Draft Law No. 3041 (February 10, 2020) — proposed amendments related to Ukraine's participation in peacekeeping operations, including those involving the National Guard.
  3. Draft Law No. 11214 (April 26, 2024)“On International Defense Companies” (initiated by Serhii Hryvko), aimed at creating legal mechanisms for PMSCs in post-war Ukraine.

None of these proposals were adopted. In contrast, Draft Law No. 13257, developed with the participation of military professionals and experts, offers a comprehensive regulatory framework covering both the domestic market and the international operations of Private Military and Security Companies.

This law is the result of years of discussion and has the potential to implement a complete legal model for private legal entities in the military and security sectors in Ukraine. It clearly defines who qualifies as a subject of international military-security activity, sets standards for companies and personnel, establishes state licensing and oversight, and provides for a Register of Entities Engaged in International Military and Security Activities.

Under the proposed framework, overall policy leadership would be exercised by the President, while the Verkhovna Rada would define the basic principles of national policy. This ensures the state retains control and oversight, making sure private forces operate in accordance with national interests. For instance, without authorization from the competent authority, a company would not be allowed to sign contracts for work in another country—particularly if that work might contradict Ukraine’s international obligations.

This establishes a key principle: “no chaos—clear rules.” Our veterans will be able to earn an honest living without breaking the law, and the government will know where, how, and for what purpose they use their combat skills.

In addition, the legal field is a protection for the contract soldiers themselves. In case of injury or other issues, they would have legal guarantees and be eligible for state support or compensation from their employer. Currently, many Ukrainians working as “soldiers of fortune” abroad have no such protection due to the lack of legal status.

The global community understands the need for regulation—the UN has been debating a convention on PMSCs for over a decade, though no consensus has been reached. Ukraine is not waiting for others to decide—it has a chance to set a responsible example.

Passing a law on private legal entities in the military and security sectors now, during wartime, is of a strategic importance. It lays the groundwork for the post-war period—so that it is not marked by a crisis of veteran unemployment, but rather becomes a story of successful reintegration and the emergence of a new economic sector.

Benefits for the State, Veterans, and the Security Sector

Let us summarize the key advantages that a civilized legalization of Private Military (Security) Companies (PMSCs) would bring to Ukraine:

  • Veteran Employment

The state gains a mechanism to provide meaningful employment for former soldiers in their area of expertise. Combat experience will not be wasted—it will become a valuable, competitive service.

  • Enhanced Defense Capabilities

The presence of PMSCs expands the toolkit for repelling aggression and protecting national interests abroad. The state can delegate secondary tasks to PMSCs, freeing up the Armed Forces of Ukraine for critical operations.

  • Economic Impact and International Reputation

Legalizing the sector will bring tax revenues to the state budget, stimulate related industries (such as insurance, training programs, and equipment manufacturing), and enable Ukrainian companies to legally compete on the global market and sign international contracts. This will strengthen Ukraine’s reputation as a provider of security services.

  • Oversight and Safety

Legislation will bring the sector under government control—ensuring transparency regarding who is operating, where, and with what weapons in Ukraine’s name. This will help prevent the illicit circulation of arms and reduce security risks.

Time to Act

Ukraine is going through the most difficult trial in its modern history, but at the same time it is laying the foundation for the future. The law on private legal entities in the military and security sectors is about the future of our defenders—and of the state itself. Its adoption would be a major step toward aligning with NATO standards and shaping the global security system with Ukraine as an active participant.

For veterans, this law is a clear signal that their country values them not only on the front lines but also after they return home.

For entrepreneurs, it is a green light to develop a new and promising industry.

For society, it is a guarantee that the skills of our soldiers will be used for good, not for nothing.

Our warriors deserve a meaningful “combat” role even in peacetime. Their experience is a national asset—one that can strengthen both the economy and security.
It is time to move from discussion to action and give Ukrainian PMSCs a lawful and legitimate foundation. This is an investment in a strong Ukraine—one that honors its defenders and boldly looks to the future.

 

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