Media: Ukraine considers lifting the ban on drone exports

9 October, 2024 Bulava loitering munition. Photo: UAC Ukraine is considering lifting the ban on drone exports to obtain additional funds to increase drone production for the Ukrainian Defense Forces' needs.

The Financial Times reported on this. After the start of Russia's full-scale invasion in February 2022, exports of military products from Ukraine were banned to cover the needs of its own troops. Currently, Ukrainian troops on the front line urgently need a large number of drones for various purposes.

However, the state's resources to pay for the production and supply of drones are limited. Therefore, drone manufacturers are looking for opportunities to export their products abroad to raise funds to expand production and attract investors.

Leleka-100 drones of the Ukrainian military. March 2023, Ukraine.

Photo credits: Come Back Alive Foundation

The article claims that the export of drones could bring Ukraine up to £20 billion. Oleksandr Marikovskyi, Chairman of the Verkhovna Rada Subcommittee on Economic Affairs, notes that this is exactly the money Ukraine needs. According to him, in a situation where the only customers are the state and charitable foundations, Ukrainian manufacturers often face short-term or deferred contracts and do not have long-term guarantees for purchasing and testing expensive parts.

There are also fears of a brain drain and a reduction in tax revenues as some companies move their production to other countries, making the issue of lifting the ban even more urgent.

SHARK and MINI SHARK drones at the ALS Systems booth at MSPO. September 2024. Photo credits: Militarnyi

Poland will, in particular, produce the Ukrainian Ukrspecsystems company's drones, including the SHARK, MINI SHARK, and PD-2 reconnaissance drones.

Production of Ukrainian drones has also been launched in Slovakia and the Czech Republic. Ukraine is currently capable of producing a total of 4 million drones annually. So far, more than 1.5 million have been contracted.

President Volodymyr Zelensky said at the opening of the Second International Defense Industries Forum in early October.