Ukraine earmarks $1B for investment in drone manufacturing in 2023

Kyiv has contracts with over 40 companies, UAV production in Ukraine increased 'tenfold,' says Premier Denys Shmyhal

By Burc Eruygur

ISTANBUL (AA) — Ukraine on Wednesday announced plans to invest 40 billion Ukrainian hryvnia (about $1 billion) in domestic drone manufacturing this year.

"We have eliminated customs barriers for importing spare parts and complete sets. The profit share of UAV (unmanned aerial vehicle) manufacturers has been raised to 25%, and a decision has been made that will facilitate the mass production of ammunition for drones," Prime Minister Denys Shmyhal said in a statement on Facebook.

Shmyhal noted that the country had raised 4 billion hryvnia for UAV manufacturing last year under an initiative called UNITED24, launched by President Volodymyr Zelenskyy in May 2022.

He also said there were currently more than 40 companies that have contracts with Kyiv, underlining that UAV production in Ukraine had increased "tenfold."

"War presents new challenges every day. One of the key ones is military technology. We must be one step ahead of the enemy and protect each of our soldiers. Drones provide such opportunities," he added.

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