The West invests billions in Ukrainian military industry as an alternative to NATO membership

The West invests billions in Ukrainian military industry as an alternative to NATO membership

Western allies, considering the low likelihood of Ukraine’s NATO membership, have supported an alternative strategy. They aim to invest billions in Ukraine’s military industry to help the country better repel Russian aggression.

This was reported by The Washington Post

If this approach succeeds, Ukrainian developments—from advanced drones to other military equipment—could eventually complement the armies of the US and Europe.

European and American officials are increasingly aware of the threat posed by Russia following signals from the Trump administration that NATO countries should not overly rely on the US for their defense. Recent incidents of Russian drones falling in Polish airspace have heightened anxiety in Europe.

Drones as an export and defence asset

Ukraine leads the world in drone technology, noted US Special Envoy to Ukraine Keith Kellogg at a conference in Kyiv. According to him, active exchanges of drone technology between Ukrainian and Western experts are currently being established.

Amid the war, the pace of innovation has become a matter of survival: the time from development to delivery to the front line and operational improvement is minimal. This is crucial both for Ukraine’s defense and for potential licensing and joint production with Western companies.

Combat experience dictates production rates

Manufacturers like FRDM work closely with frontline units and promptly incorporate feedback, said the company’s founder, Vadym Yunyk. According to him, if a government order for 10,000 drones is placed instead of 3,000, the company can ramp up production within a month and a half.

The shortage of soldiers in Ukraine has been one of the drivers of robotization and the use of autonomous systems. Thanks to this, drones and autonomous vehicles enable striking targets at a distance with greater precision, as well as delivering supplies and evacuating the wounded without risking other fighters.

Drones in the structure of enemy losses

Small Ukrainian FPV drones are responsible for approximately 70% of Russian personnel and equipment losses within a 15 km zone from the frontline, according to Ukrainian authorities. On the other end of the spectrum are long-range strike drones capable of reaching over 1,000 km and hitting targets deep inside Russian territory.

The medium-sized R-34 from FRDM has been modified—it flies three times farther and carries more guided munitions. This is an example of rapid adaptation of products to meet frontline needs.

Traditional armored vehicles are also being upgraded

Ukrainian manufacturers are not limited to drones alone. The R&D center "Ukr Armo Tech" has developed the "Gyurza-1" armored personnel carrier with modifications for protection against drone strikes, while the more maneuverable "Gyurza-2" will soon enter serial production.

The company produced 500 vehicles last year and plans to triple its capacity. Experts note that Ukraine surpasses some European companies in considering the specifics of the enemy when designing armored vehicles.

Europe invests to create a "Steel Porcupine"

European Commission President Ursula von der Leyen has stated that with more active financial support from Europe, Ukraine’s army and defense industry could transform into a "steel porcupine," reducing the country’s vulnerability. Kyiv aims to produce at least $30 billion worth of weapons annually—roughly three times the current level.

In addition to funding, Ukraine offers licensing and joint production with Western companies to integrate technologies directly into the allies’ supply chains. This approach assumes that European governments invest in domestic production and then pay for purchases for their own armies.

Joint projects and funding

Denmark became the first country to directly finance Ukrainian defence enterprises, and recently Ukraine announced a partnership with Danish companies to produce components for missiles and drones on Danish territory. The UK has stated its intention to follow this example.

A group of countries, including Denmark, Sweden, Canada, Norway, and Iceland, has allocated 1.3 billion euros for the production of artillery, strike drones, missiles, and anti-tank weapons. Germany has also signed similar agreements, the details of which have not yet been disclosed.