Ukrainian government facilitates mass drone production

The Ukrainian government approved a decree on March 24 simplifying bureaucratic procedures for the country's drone manufacturers and allowing them to compete with foreign companies.

"Instead of spending months on unnecessary paper and bureaucratic work, (we will have) accelerated admission of drones to operation, their purchase, and delivery to the front," said Deputy Prime Minister Mykhailo Fedorov.

Fedorov previously served as Ukraine's Digital Transformation Minister but was recently promoted and put in charge of innovations and the development of education, science, and technologies.

Fedorov called the decree "a historic decision that can speed up our victory and develop the drone market in Ukraine," adding that it has fundamentally changed the state's approach to the military tech business.

"Previously, the profit on foreign components was 1%, on own goods and services — 30%. This regulation restrained the development of Ukrainian manufacturers, forcing them to move abroad or manipulate documents," the deputy prime minister said.

"To stimulate the development of the drone market in Ukraine and attract more companies to production, scaling and increasing the share of local components, the state raised the share of profit to 25%."

According to Defense Minister Oleksii Reznikov, his department has received applications from Ukrainian manufacturers for producing 75 types of drones. Sixteen contracts have already been signed.

In 2023, the Defense Ministry plans to increase the procurement of drones for Ukraine's Armed Forces and allocate about Hr 20 billion ($541 million) for it, Reznikov said.

"This is just the beginning. We are talking about developing drones for a wide range of use — air, ground, and water. These drones would help with adjusting the artillery strikes, inflicting damage on the enemy (attack drones), the delivery of military equipment, evacuation of the wounded, etc.," the defense minister said.