British media said that Ukraine seems to be considering exporting UAVs abroad, even though they are in dire need of these weapons in the war with Russia.
The Financial Times (FT) reported, citing officials and people in Ukraine’s defense industry, that Kiev appears to be considering lifting the restrictions on drone exports it has imposed.
The move is aimed at generating additional revenue to support domestic arms production.
Limited resources have prompted Ukraine to consider exporting drones, an industry that has flourished in Ukraine since 2022 when Russia launched a special military campaign in its neighbor, according to the FT .
According to sources, due to lack of funds, Ukraine has been unable to purchase ready-made drones and invest in research and development of new weapons models.
Oleksandr Marikovskyi, head of the Ukrainian parliament’s economic subcommittee, is reviewing potential drone export regulations. He said the exports could bring in up to $20 billion in revenue for Ukraine.
The FT added that Ukraine’s state budget for weapons is currently only $6 billion, of which a third has been allocated to drone production.
The current ban on UAV exports could lead to a brain drain and reduced tax revenue, as Ukrainian companies seek to circumvent the ban by setting up facilities abroad, Marikovskyi said.
Multiple sources in the Ukrainian defense industry say Kiev lacks the financial resources needed to support the development of the UAV manufacturing industry.
Dmytro Khasapov, director of Ukrspecsystems, one of Ukraine’s largest drone manufacturers that has set up facilities abroad, told the FT that the Ukrainian military had a “severe shortage of UAVs”.
However, the number of state contracts signed to purchase UAVs is lower than the actual production capacity of the parties because the government lacks the resources to purchase weapons. This creates a vicious circle, affecting Ukraine’s combat potential.
Roboneers, a Ukrainian company that produces air and ground drones, electronic jamming systems and cargo transport, said state contracts were signed at prices barely covering production costs.
“The biggest problem for every Ukrainian company is research and development,” an unnamed Roboneers representative admitted, adding that his company had to spend its own money to test lenses for cameras equipped on drones during development.
Drone production requires the same policy direction as any weapons production, or the industry may eventually become unviable, said Artem Kolesnyk, chief technology officer at drone manufacturer Reactive Drones.
In March, Deputy Minister of Strategic Industries Hanna Hvozdyar announced that Kiev aimed to produce 2 million drones this year. Ukrainian President Volodymyr Zelensky revealed in August that the government had signed contracts for 1 million drones, although the actual production figure remains unclear.