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Ukraine cuts taxes and regulations for EW manufacturers to boost production

EW remains a relatively weak sector of Ukrainian military technology compared to the Russian army, which relies heavily on EW.
Ukraine's Minister of Digital Transformations Mykhailo Fedorov
Ukraine’s Minister of Digital Transformations Mykhailo Fedorov speaking about drones and EW regulations during the interview published on 11 February 2023.
Ukraine cuts taxes and regulations for EW manufacturers to boost production

Reduced VAT taxes, taxes on imports of parts, and other taxes, as well as simplified regulations, have already allowed over 200 Ukrainian companies to participate in drone production, with some models already being produced at the level of dozens of thousands per month. The next step is introducing open online state auctions to procure standard drone models for the army at the cheapest price.

The same policy will be introduced to electronic warfare systems, Ukraine’s Minister of Digital Transformations Mykhailo Fedorov announced during the interview for the YouTube channel Diya.

Inside Ukraine’s campaign to crush Russia with combat drones

We are working to repeat the success of drones. To open up the market as much as possible, to create competition,” Fedorov noted. “EW was added to the drone regulations so that companies have higher margins so that it is easier to conclude contracts,” the minister added.

He also said seven Ukrainian drone manufacturers have already proposed models similar to Russian Lancet drones. The models were successfully tested and contracts will follow.

Finally, Fedorov stressed that Ukraine has already successfully launched manufacturing of various long-range attack drone models, which was evidenced by multiple explosions at Russian oil depots and military factories. The next task is to scale up production significantly.

Fedorov praised Russian Shakhed drones, saying they are unloading air defense at a tremendous scale. Now, he said, Ukraine’s task is to repeat and surpass Russian tactics in long-range attacks.

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