Ukraine’s Drone Deal Sells the Counter-Shahed Stack, Not Just the Drone
Finland has signed and a US framework is ready. The Iran war showed why Ukrainian interceptors have to travel with Ukrainian components, software and operators.
Finland has signed and a US framework is ready. The Iran war showed why Ukrainian interceptors have to travel with Ukrainian components, software and operators.
New York agreements
On Sept. 23, Presidents Alexander Stubb and Volodymyr Zelensky signed an Agreement on Enhanced Defence and Security Cooperation under the Drone Deal format in New York, the Finnish Ministry of Defence announced. A US framework is also ready, Zelensky said on arriving for the UN General Assembly, although CBS News reported, citing three sources familiar with the negotiations, that Washington may sign later. Kyiv is selling more than interceptor airframes. It is packaging terminal guidance, command software, Ukrainian components and trained operators as one counter-Shahed system. The Iran war showed that the United States could receive the drones within days and still wait weeks for that system to work.
Two production frameworks
The US framework, built over the past year by the Pentagon and Ukraine's defense ministry, would expand testing and production of Ukrainian defense technology in the United States, CBS News reported. It would let leading Ukrainian firms work directly with US counterparts and the US military instead of confining access to contracts for a few companies. The two sides drafted an initial memorandum in May. Kyiv wants the final text to protect Ukrainian intellectual property and to stop exports from stripping its own forces of equipment.
Finland’s agreement covers technology and knowledge transfer, joint research and manufacturing, and simpler export authorizations, the ministry said. It moves no money; it gives companies a framework to negotiate contracts. Stubb said in August that about 90% of drones produced in Finland under the plan would go to Ukraine. Patria, which signed a letter of intent with Ukrainian manufacturer General Cherry in August, said the agreement advances its plan to start drone production in Finland. Kyiv's earlier agreements with Saudi Arabia, Qatar and the United Arab Emirates follow the same pattern: foreign money, Ukrainian manufacturing.
Frequently Asked Questions
What is the Drone Deal format?
A bilateral defense-cooperation agreement Ukraine is signing with partners. Finland's version, signed Sept. 23, covers technology transfer, joint research and manufacturing and simpler export authorizations. It transfers no funding; companies negotiate the contracts.
Has the United States signed?
Not yet. Zelensky said a drone deal was ready to be signed, but CBS News, citing three sources, reported it may be finalized later, when Washington is ready.
What happened with Merops in the Iran war?
In March the Army asked Perennial Autonomy for 13,000 Merops interceptors and 10,000 Bumblebee drones. They arrived within days but took weeks to become operational because Ukrainian AI beacons and warheads arrived late, according to CBS News.
Which Ukrainian drone makers already hold US contracts?
Skyeton's US arm won a $10.64 million Army contract for Raybird drones on Sept. 18. Skyfall won the first Drone Dominance gauntlet, and F-Drones delivered 2,000 F10 FPV drones for Pentagon trials by July 31.
Where will Finnish-built drones go?
President Stubb said in August that about 90% of drones built in Finland under the planned cooperation would go to Ukraine. Patria plans production with Ukrainian maker General Cherry.
AI-generated summary, reviewed by an editor. More on our AI guidelines.
Read next — from the Lexicon
Below this point
- 23,000 drones, weeks of delay
- A product that changes every season
- $500 million and the component tail
- A unit disbanded, a supply chain imported
- Four decisions to watch
Marcus Schuler
Marcus Schuler edits BattlePolicy, a daily defense-technology brief connecting the companies and capabilities behind modern war to the contest among Europe, the US, Russia, and China.