Fedorov, who plays a central role in fostering Ukraine’s private military startups, highlighted the government’s efforts in deregulating the drone market and increasing funding for drone development as the war enters its third year. The state has acted as a venture investor, allocating $2.5 million in grants to military tech startups through the BRAVE1 initiative, with plans to increase this funding tenfold in 2024. Unlike Russia, where drone production is predominantly state-controlled, the majority of Ukrainian drone manufacturers are private, with only one state company among those producing long-range drones.
Ukraine’s drone production and delivery have seen a more than 120-fold increase in 2023, aiming to narrow the technological and capability gap with Russia. This surge in production reflects Ukraine’s strategic push to achieve parity with Moscow in long-range drone capabilities, as acknowledged by Ukraine’s military spy chief, Kyrylo Budanov. Fedorov emphasized the need for anti-bureaucratic measures and technological innovation to overcome challenges, including the shortage of artillery rounds facing Ukrainian troops.
The Ukrainian government has made significant strides in supporting the drone industry, including tax removal on UAV components, simplification of contracting procedures, and addressing private sector blockages through legislative actions. President Volodymyr Zelenskiy has set an ambitious goal for Ukraine to produce one million First Person View (FPV) drones this year, emphasizing the critical role of drones in the ongoing conflict. Despite relying heavily on foreign components for drone manufacturing, there is an ongoing effort to localize production.
The rapid increase in drone production has put a strain on logistics, necessitating quick adjustments to avoid delivery delays. In December alone, drone deliveries were 50 times higher than the entire previous year. Additionally, Ukraine has taken steps to end state monopolies on drone ammunition and artillery rounds production, enabling over 20 companies to supply ammunition to the state. Alongside the manufacturing advancements, Ukraine has also trained 20,000 drone operators through a grant program for military training in private schools, further bolstering its drone capabilities and preparedness for continued conflict.
