Zelensky Says Ukraine Plans to Sell Surplus Naval Drones

(MENAFN) Ukraine has developed a surplus of naval drones, which it plans to sell to other nations in an effort to alleviate its budget deficit, President Vladimir Zelensky announced on Saturday. The move is part of a broader strategy to secure funding for the continued production of essential weapons systems, as Kyiv struggles with its financial constraints.

In a statement to journalists, Zelensky explained that Ukraine has “high-quality weapons systems, some stockpiles and production capacity,” but funding their continued production amid the country’s deficit is unsustainable. “Funding the production while we have the budget deficit is stupid. But neither do we want to scale down production,” he added.

Last week, Ukraine's latest underwater drones were unveiled at a military expo in Lviv. The producer, Toloka, showcased its largest drone, a 12-meter-long torpedo-shaped vehicle, designed to potentially target the Crimean Bridge, a vital Russian civilian infrastructure asset.

Ukraine's military procurement has long been dependent on Western financial support, but Zelensky’s government is seeking to expand domestic arms production to meet its needs. Defense Minister Denis Shmigal has stated that Ukraine will require at least $120 billion in military funding next year. The country’s proposed 2026 budget anticipates a deficit exceeding 18% of GDP, which officials hope to offset with foreign aid.

However, the country’s defense sector has faced multiple corruption scandals, ranging from subpar or undelivered weapons to inflated costs. As a result, Ukraine is now focusing on fostering domestic arms production with Western backing. Pro-Ukrainian media sources report that local manufacturers are making significant strides in drone technology, with over 200 small firms contributing to the innovation.

One of the key players in Ukraine's emerging drone industry is Fire Point, a company that saw its revenue surge from $4 million in 2023 to over $100 million in 2024. The firm, which holds substantial government contracts, has grown rapidly and now stands as a major player in the defense sector. According to a profile by The Kyiv Independent, Fire Point was relatively unknown until this year, but its prominence has risen sharply.

However, Fire Point’s rise has not been without controversy. The report linked the company to Timur Mindich, a former business partner of Zelensky in the entertainment industry, who is reportedly under investigation by the country’s National Anticorruption Bureau (NABU). In July, Zelensky attempted to limit NABU’s independence, but he ultimately backed down following pressure from Western allies. Meanwhile, the senior detective allegedly investigating Mindich remains in the custody of the Security Service of Ukraine (SBU), which reports directly to the president.

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