Ukraine allows mass production of drones

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19:00, 24.03.2023

The government has passed a decree allowing mass production of drones in Ukraine.

This was announced by Minister of Digital Transformation Mikhail Fedorov in a telegram.

According to him, this will allow UAV manufacturers to develop more actively, scale up, reinvest profits and compete with foreign companies. And it will also significantly speed up the creation and delivery of domestic drones to the frontline, because there will be no need to waste time on bureaucratic work.

Importantly, the decree fundamentally changes the government's approach to the miltech business itself. Previously, the profit margin on foreign components was 1 per cent, while the profit margin on own goods and services was 30 per cent. Such regulation hindered the development of Ukrainian producers and encouraged them to move abroad or manipulate documents.

This had to change. In order to stimulate development of UAVs in Ukraine and to attract more companies to production, scale and increase the level of localization of components, the government raised the profit share to 25%," Fedorov said.

The minister added that Ukraine has already solved the problem of expert control of dual-use goods by adopting fast-track for drones.

And now we can officially say that the Army of Drones project has grown from a volunteer project to a large-scale state programme to support development of the domestic UAV market. This is a direct path to victory and the preservation of the lives of defenders and protectors, he stressed.

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Evgenia Ruban

Eugenia Ruban writes about political and economic news. She looks at large-scale phenomena in Ukrainian politics and economics from the perspective of how they will affect ordinary Ukrainians.