Ukraine’s defense industry has the capacity to produce up to 10 million drones annually, according to Deputy Minister of Defense Oleksandr Kozenko. He made the statement at the Shangri-La Dialogue security forum in Singapore.

«Ukraine has taken the drone industry to a new level and is developing innovative solutions in the air, on land, and in water. Currently, the Ukrainian defense industry can produce 10 million different drones per year,» Kozenko said.

• He emphasized that Ukrainian drones are significantly cheaper than comparable foreign models and, crucially, they’ve been battle-tested in real war conditions. According to Kozenko, drones now account for 80% of all strikes on the battlefield.
• Kozenko also invited international defense companies to collaborate with Ukraine’s defense sector through financing, joint ventures, and knowledge exchange.

Why it matters

Production capacity is one thing, and actual deployment to the front lines is another.

Despite the industrial capability, there remains a chronic shortage of drones on the battlefield, where they are treated as disposable assets. Meanwhile, Ukrainian manufacturers are underfunded. As Oleksandr Kamyshin, Presidential Advisor on Strategic Industries, noted back in March, Ukraine could manufacture up to 5 million FPV drones annually, but only 2 million were produced last year due to a lack of government contracts. The issue? The defense budget simply can’t match the industry’s capacity.

Adding another layer to the challenge: arms exports have been suspended since the beginning of Russia’s full-scale invasion. This means Ukrainian drone makers can’t sell abroad, even if they have excess capacity. Some lawmakers, led by Danylo Hetmantsev, head of the Verkhovna Rada Committee on Finance, Tax and Customs Policy, are pushing for a partial lifting of the ban. In mid-May, Hetmantsev announced a series of regulatory initiatives aimed at reopening controlled export channels under proper oversight.