Ukraine considers lifting drone export ban to scale up - FT
Kyiv • UNN
Ukraine is considering lifting its ban on drone exports to expand the industry, the FT reports.
Ukraine is weighing the possibility of lifting the export ban on drones to boost the drone industry, reports the Financial Times, UNN writes.
Details
"Ukraine is moving to lift a wartime ban on drone exports, as officials and industry players say a scale-up is needed to match Russia's battlefield capabilities," the FT reports.
The publication writes about the need for more drones. "But with limited government resources available to pay for military supplies, drone companies are looking abroad to sell surplus products and generate the revenue needed to produce more for the military," the article says.
Exporting drones could bring Ukraine up to $20 billion in revenue, "just the money we need," said MP Oleksandr Marikovsky, head of the Verkhovna Rada's subcommittee on regional economic cooperation and trade.
The publication notes that following a full-scale Russian invasion in 2022, Kyiv has banned the export of military goods as it seeks to provide its army with all the necessary supplies. "But the Ukrainian government does not have the financial resources to buy all the drones available, let alone invest in further research and development, and allowing companies to export surplus products is now widely seen as a way to attract investors," the FT writes.
"Meanwhile, Moscow has significantly stepped up arms production, and Ukrainian industry participants estimate Russia's advantage in combat drones at 5-10 to 1," the publication points out.
The publication cites the example of a Ukrainian drone company that recently began manufacturing its products abroad in an attempt to circumvent the export ban. As quoted, Marikovsky said that "this trend is a concern for Ukraine, as it could lead to a brain drain and a reduction in tax revenues - another reason to reconsider the ban." He warned that "without the resumption of exports, the price of drones produced in Ukraine is likely to increase," the publication writes.
The industry hopes that the lifting of the export ban will encourage Western partners to help Ukrainian producers.
