Overview

• Ukraine’s defense industry now supplies roughly 40% of the country’s weapons but operates at only 60% of its production capacity due to budget shortfalls.
• The European Commission is proposing a $150 billion SAFE fund to finance expansion of Ukraine’s modular drone and arms manufacturing ecosystem.
• Kyiv’s parliament is drafting legislation to loosen export rules on drone technology and facilitate joint ventures with foreign partners.
• Ukrainian startups such as TenCore and Athlon Avia are exploring production or service partnerships abroad to shield facilities from Russian strikes.
• Western militaries have begun integrating Ukraine’s rapid innovation model for drones and autonomous systems into their own defense planning.