The Government has adopted a resolution that creates better conditions for UAV production in Ukraine. Now companies will be able to develop, scale, reinvest profits and compete with foreign companies. This is an opportunity to technologically strengthen our defenders at the front, as well as to actively develop domestic drone production.

The adopted resolution changes the requirements for outdated and bureaucratic rules that actually encouraged Ukrainian companies to leave the domestic market.

The new legislation will accelerate the purchase of drones, their delivery to the frontline and, most importantly, create conditions for Ukrainian business. The endorsed resolution enables the start of mass production of drones in Ukraine as now they should not waste several months for paperwork but instead of unnecessary bureaucracy the companies can produce UAVs.

Also, drone manufacturers will be able to make more profit and then reinvest it in further development. One of the formulas for calculating the purchase price of a UAV is as follows: production costs + percentage of profit. Previously, the profit margin for foreign components was 1%, and 30% for domestic goods and services. Low profits prevented companies from developing. To stimulate the development of UAVs in Ukraine and attract more companies to production, the Government raised the profit share to 25%.

In addition, the resolution simplifies contracting, acceptance of goods, approval for operation, and delivery to the front line. On the one hand, companies get favorable conditions for development and scaling, and on the other hand, our military will receive more drones at the front faster and more often.

Last month, the Government adopted a resolution that speeds up and simplifies the import of military goods, in particular, UAVs and components to the territory of Ukraine.

Source: www.thedigital.gov.ua