Ukraine allocates $1.1 billion for drone production in 2023

Ukraine has allocated 40 billion hryvnias (about $1.1 billion) this year to develop its drone production, Prime Minister Denys Shmyhal said on Wednesday.

Currently, more than 40 Ukrainian companies that produce unmanned aerial vehicles (UAVs) have signed contracts with the government, Xinhua news agency reported, citing Shmyhal's post on social media platform Facebook.

The number of drone manufacturing companies in Ukraine increased by more than four-fold in the past year, driven by government investment and incentives, he said.

In particular, the government has eliminated customs barriers for importing spare parts for drones and increased the profit share of the UAV manufacturers to 25 per cent, Shmyhal said.

According to Shmyhal, in 2022, Ukrainian drone producers attracted about $110 million in investment.