"A Drop in the Ocean": Why the Military Lacks Drones and How Exports Can Help

The Export of Drones — A Controversial Issue

The chairman of the Economic Subcommittee of the Verkhovna Rada, Oleksandr Markivskyi, stated to the media that exports could bring Ukraine up to $20 billion, significantly aiding the development of unmanned systems production. Meanwhile, Deputy Commander of the 3rd Separate Assault Brigade of the Armed Forces of Ukraine, Maksym Zhorin believes that selling drones abroad is not an option, as there is a critical shortage of them for the Ukrainian army. According to him, units are forced to seek out drones on their own, turning to volunteers, local communities, and private sponsors for assistance.

"As a state, we haven't even reached half of what is needed on the front lines today. Ukraine is the first in the world that currently requires drones. What kind of export is possible under such conditions?" he protested.

$2 Billion for Drones: Is This Amount Sufficient?

What is happening in Ukraine regarding funding, and how much is the government allocating from the budget specifically for UAVs? According to the Law of Ukraine "On the State Budget of Ukraine for 2024," adopted in November 2023, 1.164 trillion hryvnias were allocated for defense. Of this, 265.4 billion or 22.8% is earmarked for the procurement of weapons, equipment, UAVs, and ammunition, as well as for the repair of combat-damaged equipment.

Later, Deputy Minister of Defense of Ukraine, Lieutenant General Ivan Havryliuk informed "ArmyInform" that over 43 billion hryvnias have been allocated for the purchase of UAVs. In April, Prime Minister Denys Shmyhal confirmed this amount and stated that an additional 15.5 billion would be added from the budget. In August, the Cabinet of Ministers announced an additional allocation of 24 billion hryvnias. In total, this amounts to 82.8 billion hryvnias, or approximately $2.01 billion at the current exchange rate.

"I don't have 100% information on how much money is needed, and this information should be confidential. But in my opinion, this is just a drop in the ocean. We see that the use of unmanned systems on the front has been growing exponentially compared to previous years," he noted.

The State Cannot Purchase Everything the Army Needs

Igor Krynychko added that the state must undoubtedly procure weapons for the military, but unfortunately, it is unable to meet all its needs from the budget. Domestic manufacturing companies are noticing this in terms of the number of contracts, delivery volumes, and requests from the military on the front lines.

Companies need to provide defenders with what is needed right now, but they also need to modernize equipment, improve specifications, and develop new technologies. All of this requires funds that manufacturers can only derive from their profits from sales of serial products.

"As of today, our production is operating at a minimal percentage; we can significantly increase production. The demand for our products is enormous, but it is currently very difficult, not only with government orders but also with volunteers, charitable foundations, and other organizations that were able to make purchases last year. As far as I hear, there is a high demand for aerial vehicles, especially reconnaissance types, but manufacturers remain largely underutilized," says Igor Krynychko.

Export Will Help the Army

The head of SkyAssist asserts that export will not only assist Ukrainian drone manufacturers but will literally save them. Certainly, companies from Ukraine can significantly increase prices for the foreign market and gain more profit. This means more resources not just for manufacturers but also for the state, which will receive more taxes, allowing it to purchase more drones and other armaments for the military. Moreover, engineers will be able to accelerate new developments, and the burden on volunteers and charitable organizations will lessen.

"I can speak from our company's experience; when there is profit and some financial capability, we simply donate our products to the military. Therefore, opening the door to exports will be a tremendous help to manufacturing companies, the state, and the army. It will be a breath of fresh air and new opportunities for any manufacturer," Igor emphasized.

He sees many additional advantages in the export of drones, such as creating jobs for Ukrainians at a time when certain employment issues are observed. It also provides an opportunity to develop complex scientific fields to technologically outpace the enemy.

The SkyAssist team has repeatedly showcased the UAV "Syrko" at international exhibitions, including MSPO 2024 in Poland. According to Igor Krynychko, their booth was never empty, with interested foreigners constantly approaching.

"This is very indicative. It is clear that no one can compare with Ukrainian manufacturers with military experience, so there is already a queue for them. Today, it is no longer just 'general talk,' but rather specific proposals from certain Asian and European countries. Finland, Estonia, Poland, and France have expressed interest. I can confirm that negotiations are currently underway. What is encouraging, and if combined with information about the possibility of export — it brings cautious optimism," Igor Krynychko concluded.