Ukraine has one of the largest – and best -proven – military industries in the world. Still Only two Ukrainian companies had their stands at the huge DSEI defense fairwhere hundreds of exhibitors presented armored personnel carriers, artillery, drones, robots, rifles and rockets. There is one main reason for their absence: Kiev does not want Ukrainian companies to sell their valuable technologies abroad.
The government claims that I want to avoid equipment shortages on the front linesand is also afraid not to give Western supporters the impression that he exports their weapons instead of maximizing his own resources. Industry representatives, however, say that greater freedom in the sale of weapons would stimulate economic growth and attract more tax revenues, and would also increase innovation.
– This is a big problem – says Jarosław Filimonow, general director of Kwertus, which produces systems capable of detecting drones at a distance of up to 100 km in large networks and frying them using white noise technology. – I am completely sure that Ukraine must open to export.
Jarosław Filimonow from KwertusVictor Jack / Politico
Mark Rutte, a general secretary of NATO, has long argued that Europe must urgently strengthen its air defense. This issue remembered last week when, like a military alliance, he was forced to shoot down the swarm of Russian drones that entered the Polish airspace.
For Europe, the benefits of softening trade with Ukraine can be “huge”according to Ulrike Franke from the European Council of Foreign Relations, a defense specialist.
Companies from Kiev could teach Western companies, how to increase the efficiency of public-private cooperationand also quickly produce drones on a massive scale. Currently, Europe produces “tens of thousands” of drones a year, estimates Franke, compared to 4 million, which Ukraine intends to produce in 2025.
It is also a price. Filimonow claims that his systems are “two to three times” cheaper than alternative solutions. Rory Chamberlain, managing director of Ukrspecsystems, is of a similar opinion. He claims that the reconnaissance drones of the Ukrainian company are “six times cheaper” than Western European alternatives. In addition, his spy drone is also trained on “much more data than any other alternative”which significantly improve its accuracy.
Although export restrictions limit the capabilities of Ukrainian companies, This does not stop them from establishing cooperation with European partners. Last week, Ukrspecsystems announced that at the beginning of next year he would open an $ 250 million observation drone production plant in England. [ok. 900 mln zł]. In July, the British company Prevail Partners and Ukrainian Skyeton also announced that they will soon start the production of assault drones in England.
However, even such international cooperation is also blocked by the ban on export. Petri Reiman, senior vice president of Insta – a Finnish company dealing with defensive technologies, which opened a factory producing drones for Kamikaze in Ukraine in 2023 – argues that Kiev export restrictions prevent local partners from sharing the design softwarewhich inhibits innovation. The abolition of the ban “has sense”, as he explains in an interview with Politico on the occasion of DSEI.
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Pressure is also growing in the country. According to the survey published last month by the technological forces of Ukraine, the National Association of Drone Producers, 97 percent private military producers are waiting for the elevation of restrictions by the governmentto start deliveries to partner countries and launch joint ventures.
Paradoxically, This prohibition led to the loss of control over the intellectual property of some types of weaponsnotes Andrij Zagoroduk, chairman of the Defense Strategy Center based in Kiev, a former Ukrainian defense minister.
This is due to the fact that Some companies are currently developing technology through international entitiesto avoid restrictions. – It is not in the interest of the Ukrainian government, because he wants to limit this flow if the need arises – he emphasizes.
“The government is in the process of lifting certain restrictions”
However, there are signs that the government is changing the current course. Arsena Żumadiłow, who manages the Ukrainian Defense Order Agency, reveals in an interview with Politico that he had spent most of his time at the arms conference convincing component producers to build factories in Ukraine. He also repeatedly addressed European government delegations to “share experiences and conclusions from what we know.”
Sołomija Bobrowska, a parliamentarian from the opposition party Hołos and a member of the Defense Committee, says that “the government is in the process of enduring certain restrictions”, including permission to sell surpluses of weapons and immortal weapons. But “when it happens … it's hard to say” – he adds. It is clear, however, that “the arguments of the Ukrainian government that we had in 2022 are no longer relevant.”
The Ministry of Defense of Ukraine did not respond to Politico's request for comment.
I’m Ashley Davis as an editor, I’m committed to upholding the highest standards of integrity and accuracy in every piece we publish. My work is driven by curiosity, a passion for truth, and a belief that journalism plays a crucial role in shaping public discourse. I strive to tell stories that not only inform but also inspire action and conversation.