A Ukrainian Team is in Washington this week, to Craft a Landmark Agreement with the Trump (R) Administration that would involve Kyiv Sharing its Battle-Tested Drone Technology with the U.S. in Exchange for Royalties or other Forms of Compensation, according to Officials from both Countries. THe Prospective Deal, which has the backing of Trump and Ukrainian President Volodymyr Zelensky, would mark a Milestone in the Security Relationship between Washington and Kyiv.
For years, the Ukrainian Military has received U.S. Weapons, most recently under an Arrangement in which the Trump Administration Sells Arms to European Nations that are Donating them to Kyiv. Under the New Deal, Ukraine would Draw on its Extensive Experience in Producing and using Drones to Battle the Russian Military. A Team of Ukrainians, led by the Country’s Deputy Defense Minister Sergiy Boyev, began several days of Talks in Washington with Pentagon and State Department Officials on Tuesday.
Finalizing the Detailed Agreement, which could be worth Billions-of-Dollars, is likely to take Months, a U.S. Government Official said. While the U.S. Companies make some Sophisticated Drones, the Ukrainians are well Ahead in Mass Producing Cheap Unmanned Aerial Vehicles (UAVs), that have Proved to be Effective in Battle. “It is just a reality that we need Ukrainian drone tech in the U.S.,” said William McNulty, a Partner at UA1, a U.S. Venture-Capital Fund, which has Invested in Eight Ukrainian Defense Companies.
The potential Deal also has Political significance as Kyiv looks to Solidify Ties with Trump, whose Support for Ukraine has sometimes been Erratic. Trump has become increasingly Frustrated with Russian President Vladimir Putin’s Decision to Step-Up Attacks on Ukraine while Rebuffing White House Appeals to Negotiate a Peace Settlement, which has also Opened the Door to more U.S. and Ukrainian Cooperation.
The Drone Agreement is Emerging as part of a Package that would include a separate “Megadeal” in which Ukraine is hoping to Purchase Tens-of-Billions of Dollars in Arms from the U.S., Zelensky said Saturday. Ukraine is hoping that the Arms Deal includes Long-Range Missiles to Expand its Striking Power against Russia. The Potential Drone Deal also Highlights how much the U.S. Industry can Benefit from Ukraine, which has Pioneered New Technologies, Tactics, as well as the Ability to Rapidly Incorporate Innovations for a Changing Battlefield. With the Ukraine Conflict Rewriting how Nations Fight, Governments, Investors, and Companies in Europe have already been Rushing to Capitalize on Ukraine’s Drone Technology.
A U.S. Government Official said the Drone Deal is Designed to allow U.S. Forces to Capitalize on Ukraine’s Competitive Advantage in UAVs. In turn, Kyiv is seeking to Pay for High-End American Weapons. He was Referring to the Patriot Antimissile System, the Himars launchers that Fire GMLRS Rockets and Army Tactical Missile Systems, or Atacms, and the Air Force’s Multirole Fighter. Ukraine’s use of Atacms against Targets inside Russia has been Subject to Pentagon Review, and None has been Fired against Objectives in Russian Territory since Trump took Ooffice. Trump Officials said they are now Weighing Ukraine’s Appeal for Long-Range American Weapons and have Authorized the Provision of Intelligence for Kyiv’s own Long-Range Strikes against Energy Targets in Russia, which have mainly been Carried out with Drones.
The U.S. and Ukraine are Exploring several different Mechanisms for Facilitating Drone Technology Transfer from Kyiv to the U.S. They include Deals in which Ukrainian Companies provide Drone Technology and Prototypes to American Companies in Exchange for a Royalty or an Arrangement in which a Ukrainian Company establishes a Subsidiary in the U.S. to produce Drones. Another possibility is Buying the Drones directly from Ukraine for the U.S. Military.
In April, the Trump Administration and Kyiv reached a Deal that gave the U.S. Access to Ukrainian Mineral Resources. But the Ukrainian Government mainly Controls the Rights to its Mineral Resources, making it an easier Deal to Negotiate. Any Accord over Drone Technology will have to Facilitate Access to Technology and Systems from Private Ukrainian Drone Companies. There are more than 300 Drone Companies in the Country, according to the Ukrainian Council of Gunsmiths, a Trade Organization.
The Widespread use of Chinese Parts in Ukrainian Drones is One Problem that needs to be Managed. U.S. Companies that Acquire Ukrainian Drones and Technologies can’t use Chinese Components, because of the Imperative of having Secure Supply Lines. Ukraine turned to Drones from the Very Start of Moscow’s Full-Scale Invasion, using them to Inflict Damage on Russia’s Larger and Better-Equipped Forces. Since then, the Country has Pioneered the use of Cheap First Person View Attack Drones, Marine Drones, and Artificial Intelligence in this Sector, among other Innovations.
Ukraine produced more than Two Million Drones last year. Ukraine can Produce its Drones for 20% to 30% of the Cost of Western Makers, said UA1’s McNulty. That Expertise in Mass Producing Cheap Drones is what the West most needs, Analysts say. In Pursuing the Deal, American Officials would also Reap the Benefits of a Ukraine Drone Industry that Washington has Quietly Supported for years. After Ukraine’s Failed 2023 Counteroffensive, then-National-Security Adviser Jake Sullivan Commissioned several Intelligence Analyses, which indicated that the Development of Short-Range and Long-Range Drones would Buttress the Ukrainian Military.
In Europe, Companies and Investors have already reached a similar Conclusion. In September, the U.K. and Kyiv announced a Deal to Share Technology and Produce Ukrainian Drones in Britain. The Two Sides already Plan to Mass Produce in the U.K. an Unmanned system named Octopus, which Intercepts other Drones in the Air. Earlier this year, the Danish Government Signed an Agreement with Kyiv to help Ukrainian Defense Companies make Drones and other Weapons in Denmark.
Meanwhile, European Companies and Investors are putting Money into Ukrainian Drone Makers. German Drone Maker Quantum Systems, for instance, bought a 10% Stake in Frontline, a Ukrainian Autonomous Ground and Aerial-Vehicle Maker. It has the Option to Increase that to 25%. Frontline is looking for a European Site to Manufacture some of its Products. “It’s about scaling production in a safe environment,” said Mykyta Rozhkov, a Frontline Executive.
Other Ukrainian Companies are also Scouting for Foreign Bases. Skyeton, which Manufactures the Raybird, a Surveillance Drone the Company Claims can Operate for more than 28 hours, said it is Currently in Talks to Start a Factory in Southern England. Western Governments and Companies aren’t just Seeking Ukrainian Technology but also Data and Experience from its Battlefield. “Any company that does not [have a team in Ukraine] doesn’t understand the current battlefield conditions for drones and robotics,” said Sam Vye, Chief Executive of Syos Aerospace, a New Zealand-based Land and Sea-Drone Manufacturer.
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