President Volodymyr Zelensky says up to 10 Ukrainian interceptor drone factories have been secretly built abroad “behind the state’s back” in an attempt to bypass Kyiv’s wartime ban on arms exports.
Speaking to journalists on March 28, Zelensky warned the companies involved would ultimately lose out.
“I know of around 10 factories that were built behind the state’s back in different parts of the world – just so that, God forbid, they wouldn’t be losing out on anything. [Though] I think they’ll be losing out,” he said.
Ukraine imposed strict controls on exporting domestically produced weapons after Russia’s full-scale invasion of Ukraine, keeping critical defense capabilities – including explosive components and operator training – under military control.
The issue has gained urgency as Ukrainian drone makers eye lucrative markets in the Middle East, particularly following rising regional tensions tied to the war in Iran.
Some manufacturers argue the export ban is costing them business. On March 17, Ukrainian producer Wild Hornets said it was ready to supply interceptor drones to the region if approved by the state.
But Zelensky pushed back, insisting Ukrainian firms are not being shut out of Gulf opportunities – and criticizing what he described as short-sighted deals.
He cited one case where a Ukrainian company sold 1,000 interceptor drones abroad for just $3.5 million, despite having sealed a €300 million ($345 million) state contract.
“Is that serious money for a company that got its first contract from us for €300 million? Now they’re happy with $3.5 million – it sounds unserious,” he said.
Zelensky underscored that private firms cannot export fully operational systems on their own.
“They sell drones – but the warheads are with our military,” he said. “Then they come back asking: give us explosives for 1,000 drones. That’s not how it works.”
He also revealed that at least one European country bought Ukrainian interceptor drones without warheads – and later asked Kyiv to provide trained operators.
“I said no,” Zelensky added.
Kyiv is instead pursuing tightly controlled, long-term defense deals. According to the president, Ukraine has signed strategic 10-year agreements worth billions with several Middle Eastern partners – allowing exports while preserving control over sensitive military components.
Separately, US Army Secretary Daniel Driscoll said Washington recently deployed 10,000 Merops interceptor drones – tested in Ukraine’s war effort – to the region, highlighting growing global demand for anti-drone technology shaped on the battlefield.