Glib Kanievskyi: The localization of drone production is crucial for securing long-term contracts

Ukrainian unmanned aerial vehicle manufacturers who increase localized production share will gain advantages in public procurement.

“As a procurer using budgetary resources, we are keen to ensure that the localization percentage is as high as possible. With this goal in mind, at the end of last year, the Cabinet of Ministers of Ukraine adopted a Resolution entitled "Weapons of Victory.” The Resolution outlines clear criteria for Ukrainian weapons manufacturers, including manufacturers of certain types of bomber drones and reconnaissance drones. Should they achieve localization of more than 50% of the unit cost of all components, they will be eligible for guaranteed long-term contracts from the state, ranging from three to ten years,” explained Glib Kanievskyi, Director of the Procurement Policy Department of the Ministry of Defence of Ukraine.

Complete localization of drone manufacturing is not achievable, as some countries specialize in manufacturing particular components. Furthermore, combat operations necessitate continuous modifications to the UAV design; in fact, drones need to be updated every three months. Hence, there is a continuous effort to find components for UAV improvement. 

The Ministry of Defence procures a finished product, which is then provided to the Armed Forces of Ukraine to carry out the tasks assigned to Ukrainian defenders. Therefore, enhancing the design is the responsibility of the manufacturers. 

The Ministry has also decided to allocate UAH 2.5 billion monthly to military units. Firstly, this will enable combat brigades to procure unmanned aerial vehicles independently. Secondly, they will be able to procure spare parts and components for the upgrade and repair of UAVs based on the needs at the front lines.