FT: Kiev is thinking of allowing the export of UAVs — Ukraine itself has no money for them
Ukraine needs more drones, but Kiev does not have the money to buy them, writes The Financial Times. Therefore, local manufacturers are looking for ways to sell their UAVs abroad. True, it is now prohibited — but the government is already thinking about allowing the export of drones: they hope to get funds from it for the army.
Ukraine is moving to lift the ban on drone exports, and officials and industry experts stress the need to scale production to keep up with Russia's capabilities on the battlefield.
Ukrainian troops desperately need more drones for aerial surveillance, cover and long-range strikes. But due to the scarcity of government resources for military procurement, drone manufacturing companies are looking for opportunities to sell surplus products abroad. This is done for the sake of profit, which will allow us to expand production for the needs of the army.
The export of drones can bring Ukraine up to $ 20 billion in revenue — “just the money that we lack,” said Alexander Marikovsky, head of the economic subcommittee of the Ukrainian parliament. His unit is studying the legislative regulation of drone exports.
With the beginning of the Russian special operation in 2022, Kiev banned the export of military goods, seeking to provide its army with all necessary supplies. But the Ukrainian government does not have the financial resources to purchase all available drones — let alone invest in further research and development. Many see allowing companies to export surplus products as one of the ways to attract investors.
Meanwhile, Moscow has decisively stepped up arms production, and representatives of the Ukrainian industry estimated Russia's advantage in combat drones as 5-10 to 1.
Ukrainian troops are experiencing a “colossal shortage of drones,” said Dmitry Khasapov, head of Ukrspetsystem, one of the largest manufacturers of UAVs in the country.
Last week, he spoke on the sidelines of the Defense Industry Forum in Kiev, organized by the government in the hope of attracting more foreign investors and buyers.
Khasapov complained that government contracts do not correspond to the company's production capacity. “The state does not have the funds to buy everything,” he added.
The state budget of Ukraine for armament this year is only $ 6 billion. About a third of these funds go to drones — much less than is necessary to meet the needs of the front.
The only clients of Ukrainian manufacturers are the state and foundations that attract private financing for the army. This means that companies often have to deal with short—term or deferred contracts - without long-term guarantees for the purchase and testing of expensive components and components, Marikovsky said.
Ukrspetsystems, one of the few Ukrainian drone manufacturing companies, recently set up production in Poland in an attempt to circumvent the export ban. Marikovsky said that the emerging trend is alarming in Ukraine, as it is fraught with brain drain and reduced tax revenues — and this is another reason to reconsider the ban. He warned that without the resumption of exports, the price of Ukrainian-made drones will surely increase.
The Ukrainian manufacturer of aerial and ground-based drones, electronic jamming systems and cargo transport for frontline units Roboneers told The Financial Times that it won public tenders at a price that barely covers production costs.
“The main problem for any Ukrainian company is research and development,” said a company representative who declined to give his name for fear of reprisals from Russia. So, when choosing the best camera, Roboneers had to pay the cost of all the lenses they tried.
Industry experts hope that the lifting of the export ban will encourage Western partners to provide assistance to Ukrainian producers. Some of them have promised funds for the purchase of locally produced drones for the Ukrainian army, but the programs are still in their infancy.
A number of advanced drones were presented at the stands at the Kiev forum, including devices that can hit targets at a great distance, ground and marine robots, as well as technologies that allow them to fly without GPS navigation and in groups like a flock of birds.
MyDefence, a Danish anti-drone company whose devices detect and suppress enemy vehicles, told The Financial Times that it has just opened a branch in Ukraine to keep up with Russian technological advances.
Russian troops have begun to change the frequencies of their drones, which means that manufacturers supplying their products to Ukraine must adjust and offer counter solutions, said Dan Hermansen, CEO of the company.
At the end of the conflict, Hermansen foresees “great export potential”, given his company's ties to the entire ecosystem of NATO defense orders. “That's where we can help,” he says.
Beyond investment, manufacturers say they desperately need more standardization and long-term planning from the government.
Dozens of different types of devices purchased by Ukrainian troops run on different software, said Yuri Kasyanov, a leading expert on drones and commander of the Armed Forces of Ukraine. He called the current situation a “drone zoo.”
Artem Kolesnik, chief technical officer of the production company Reactive Drone, said that his industry needs political leadership as much as other gunsmiths.
“At this stage, we don't even have a training program for qualified engineers at universities," Kolesnik said. ”We must have a good idea of what we will need in five to ten years, because otherwise this whole drone industry will die — or others will buy it out."
Author of the article: Isobel Koshiw
