Long-term contracts for high level of localization: the state encourages drone manufacturers
11 March 2025 17:07
Ukrainian manufacturers of unmanned aerial vehicles that increase the share of localized production will have advantages in public procurement. This was reported by the Ministry of Defense, "Komersant Ukrainian" reports.
As you know, at the end of last year, a government decree was adopted that set clear requirements for Ukrainian weapons manufacturers, in particular, certain types of bomber drones and reconnaissance drones. The resolution stipulates that if manufacturers localize more than 50% of the unit cost of all components, they can receive guaranteed long-term contracts from the state for three, five or ten years.
“We, as a customer paying budget funds, are interested in making the percentage of localization as high as possible. This is why the resolution of the Cabinet of Ministers of Ukraine “Weapons of Victory” was adopted at the end of last year,” explained Hlib Kanevskyi, Director of the Procurement Policy Department of the Ministry of Defense of Ukraine.
According to him, complete localization of drone production is impossible because there are countries that specialize in the production of certain components. In addition, combat operations require constant changes to the design of UAVs: in fact, every three months the drones must be updated, which means a constant search for components to improve them.
Non-standard approaches to drone supply are being implemented
The Ministry of Defense has decided to allocate UAH 2.5 billion per month to military units. According to the defense ministry, this will allow to take into account the needs of the military as much as possible. Combat brigades will be able to independently purchase not only unmanned aerial vehicles, but also spare parts and components for their modernization and repair in accordance with the needs on the front line.
Also, at the initiative of President of Ukraine Volodymyr Zelenskyy, the “Drone Line” project was launched, for which the Ministry of Defense allocated an additional UAH 4.6 billion. As part of this project, the 5 most successful combat units in the use of UAVs will also be able to purchase drones, electronic warfare equipment, and vehicles for mobile groups on their own.
At the end of January, the Ministry of Defense announced the start of licensed production of modern FPV drones at a state-owned enterprise. The corresponding pilot project was launched in December last year under the general coordination of the Ministry’s Defense Innovation Directorate, and as a result, the state was able to produce codified FPV drones. It is reported that a private developer has granted a license to manufacture UAVs on the basis of one of the state-owned enterprises as part of a trilateral agreement. A roadmap has already been developed to organize similar production facilities together with other developers of unmanned aircraft systems.
More money for more drones
This year, the Ministry of Defense of Ukraine will allocate more than UAH 110 billion for the purchase of drones, including more than UAH 102 billion through the Defense Procurement Agency.
“While in 2023 the Ministry of Defense purchased thousands of drones, and in 2024, together with the State Service for Special Communications and Information Protection of Ukraine, more than 1.5 million drones were purchased, this year the numbers will be even higher, as the capacity of the domestic defense industry in 2025 is approximately 4.5 million FPV drones. And the Ministry of Defense plans to purchase all of them,” said Hlib Kanevskyi, Director of the Procurement Policy Department of the Ministry of Defense of Ukraine.
According to him, all procurement plans for 2025 have received budgetary funds and this will allow the frontline to be supplied with unmanned aerial vehicles as soon as possible.
Ukraine outperforms Russia in the production of FPV drones
In an interview with Ukrinform, First Deputy Minister of Defense of Ukraine Lieutenant General Ivan Havryliuk said that the drone industry in Ukraine is developing at a breakthrough pace and, for example, Ukraine is currently outperforming the Russian Federation in the production of FPV drones.
He said that since February 24, 2022, more than 1,300 new models of weapons and military equipment manufactured by Ukrainian enterprises have been codified for the needs of the Defense Forces. The largest group of them is the BpAK and ammunition for them.
Last year alone, more than 250 new UAV models of various types and purposes were approved for use in the Defense Forces.
“But we need to understand that the determining factor is not only the number of drones developed and manufactured. The efficiency of their use and the speed with which developers can respond to changes are crucial,” said Havryliuk.
According to him, you can have hundreds of thousands of drones, but they will be powerless against enemy countermeasures. We need to look for new ways to maintain effectiveness, and the technological “duel” between drone and electronic warfare manufacturers clearly illustrates this.
And here, as the First Deputy Minister of Defense emphasized, the advantage is on the side of the one whose engineers will offer a technological solution to which the enemy will not have a ready answer.
