Home » Ukraine’s Defense Industry Transforms Soviet Plants into Drone Factories

Ukraine’s Defense Industry Shifts From Soviet-Era Plants to Mass Drone Production

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Soviet Era Factory

Ukraine produced about 3 million unmanned systems in 2025 and has plans for up to 8 million FPV drones a year. That makes it a world leader in mass drone production. The catch is that it still leans on Western-supplied systems such as Patriot to defend against hypersonic and ballistic missiles.

The industry did not start here. Before 2014, Ukraine lacked modern UAVs and relied on outdated Soviet models such as the Tupolev Tu-141 and Tu-143. After the war began, private groups like Athlon Avia and Aerorozvidka built the A1-CM Furia and the R18. Research into drone warfare still moved slowly, because a bureaucratic procurement system limited investment and held back production.

After the 2022 invasion

The full-scale invasion changed the pace. Ukraine began turning out many kinds of drones in volume: mostly UAVs, but also sea and ground drones. Civilian workshops sprang up across the country, often in home garages or kitchens. Programs such as People’s FPV and SocialDrone UA give participants instructions on sourcing parts and assembling drones. Non-profits including the Wild Hornets and Escadrone make and deliver combat and support drones to the armed forces.

By 2023, over 200 Ukrainian companies were working in the sector, and many held state contracts. The industry still depends on Chinese components as of 2025.

The product list is long. The Sting is the main interceptor against long-range drones. The Liutyi, developed by Ukroboronprom in late 2022 and first used in 2023, is the main long-range one-way attack drone and is often compared to the Shahed 131. The Molfar, an FPV drone 10 inches long, carries a 4 kg payload and has a 25 km range. At sea, the MAGURA V5 unmanned surface vehicle can scout, attack ships or act as an anti-aircraft platform.

Ground robots have become a category of their own. By mid-2026, around 280 companies were producing more than 550 models of unmanned ground vehicles for casualty evacuation, resupply, demining and direct-fire support. They were running more than 10,000 logistics missions a month by April 2026, and the Ministry of Defence set a target of 50,000 ground drones for the year.

Shells, bullets and the old giants

The older industry has not gone away. Ukroboronprom, the state-owned conglomerate at its center, groups over 130 companies, from Soviet-era names like the Ivchenko-Progress design bureau, opened in 1945, to RPC Fort, founded in the 1990s. 125mm tank shells and 122mm, 152mm and 155mm artillery shells are in mass production. Full-cycle domestic production of NATO-standard 155mm shells began in 2025 under a licensing agreement with Ukrainian Armor.

Rifle ammunition came back in 2024. Ukraine made 5.45x39mm and 5.56x45mm cartridges for the first time since 2014, when Russia’s seizure of the Luhansk Ammunition Plant crippled domestic bullet-making.

From exporter to front-line supplier

Before the war the industry was oriented mainly toward exports. In 2012 Ukraine ranked as the fourth-largest arms exporter in the world. After the war in Donbas began in 2014 the industry focused on the home market, and the country slipped to ninth by 2015, 11th by 2018 and 12th by 2019. The 2022 invasion brought a near-total export ban, which sent almost all output to the front.

That is now loosening. In September 2025, President Volodymyr Zelenskyy announced that controlled exports of surplus arms would be allowed so the country could finance frontline needs. In February 2026, Deputy Secretary of the National Security and Defense Council Davyd Aloian said the state commission that issues wartime licenses had approved most of the 40 applications submitted by defence companies to export equipment and services.

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