Cancellation of state obstacles to the production of UAVs

The government adopted a long-awaited resolution on favorable conditions for the development of domestic production of UAVs. The goal is to enable companies to set up mass production. Previously, this was hindered by restrictions imposed by the government officials themselves.

The most important change is that the government raised the allowed share of gross profit for UAV manufacturers to 25%. Before that, the allowed profit could be equal to only 1-3% of the cost of components and 30% of its assembly. Such regulation hindered the development of Ukrainian manufacturers and stimulated them to move abroad. In addition, this state restriction made the industry unattractive for investment.

The government also simplified the conclusion of contracts, acceptance of goods, admission to operation and supply to the front and assured that this is only the beginning of changes.

In Ukraine, the production of military products is too regulated by law, which makes it difficult for manufacturers to develop their capacities, scale, reinvest profits and compete with foreign companies. Therefore, we are waiting for deregulations not only regarding drones, but also regarding other areas of the military industry.