WSJ revealed details of Ukraine and US plans for major drone deal
Ukraine and the US plan to conclude a drone deal under which Kyiv will share its combat-tested drone technology with Washington in exchange for royalties or other forms of compensation. The deal could be worth billions of dollars.
As reported by The Wall Street Journal, a Ukrainian team led by Deputy Defence Minister Serhii Boiev is in Washington this week for talks on the deal with representatives of the Pentagon and the Department of State. However, according to The Telegraph, the talks have been left in limbo due to the US government shutdown.
Meanwhile, a US government official told the WSJ that finalising a detailed deal potentially worth billions is likely to take several months.
Although US companies manufacture high-tech drones, the Ukrainians significantly outperform them in the large-scale production of inexpensive drones that have proven effective in combat.
"It is just a reality that we need Ukrainian drone tech in the US," commented William McNulty, partner at the American venture fund UA1, which has invested in eight Ukrainian defence companies.
President Volodymyr Zelenskyy stated on Saturday 27 September that the drone deal forms part of a broader package, including a separate "megadeal", under which Ukraine hopes to purchase tens of billions of dollars' worth of weapons from the US. Ukraine hopes the deal will include long-range missiles to expand its strike capabilities against Russia.
A US government official said the drone agreement is aimed at enabling US forces to benefit from Ukraine's competitive advantage in the UAV sector.
According to sources familiar with the talks, the US and Ukraine are considering several mechanisms to facilitate the transfer of drone technology from Kyiv to Washington. These include agreements under which Ukrainian companies would provide US firms with drone technologies and prototypes in exchange for royalties or the option for a Ukrainian company to establish a subsidiary in the US for drone production.
Another option is the direct purchase of drones from Ukraine for US military use.
Any deal on drone technology must ensure access to the systems and technologies of private Ukrainian drone manufacturers. According to the Association of Ukrainian Defence Manufacturers, there are more than 300 companies in the country producing drones.
The widespread use of Chinese components in Ukrainian drones is a challenge that will need to be addressed. American companies receiving Ukrainian drones and technologies cannot use Chinese components due to supply chain security requirements.
The upcoming deal also carries political significance as Kyiv seeks to strengthen ties with US President Donald Trump, whose support for Ukraine has been inconsistent.