Ukraine bets a free market for weapons production can out-innovate Russia

Kyiv's drone army has been built mostly by private cos, few of which existed when the full-scale invasion began

- IAN LOVETT AND NIKITA NIKOLAIENKO

When Andriy Bondarenko, a tech entrepreneur, began making drones, he had no experience with weapons. Working with a friend, it took him one month to develop a prototype, which they paid for with their own money.

A month later, their first explosive land drones were at the front, crossing muddy terrain to strike against Russian trenches. No government contracts or approvals were required.

Just over a year later, Bondarenko's company, Ark Robotics, has raised more than $1 million from investors, released 20 updated versions of its original drone, and is working on a communications system that lets pilots control drones from farther away.

Facing an invasion by an enemy with four times its population and an economy 10 times larger, Ukraine has tried to build up its weapons production by embracing a hyper-capitalist model.

Encouraged by tax cuts, deregulation and government grants, more than 200 new munitions companies have sprung up since the start of the full-scale invasion in 2022, according to Ukrainian officials. Though they make everything from ammunition to gunpowder, most, like Ark Robotics, primarily produce drones.

The open market in Ukraine stands in contrast to war production in Russia, where the government has bank-rolled mass production of weaponry at state-owned factories. Kyiv cannot match Moscow's output and remains heavily dependent on the West for supplies, especially long-range weapons.

Once President-elect Donald Trump takes office in January, the flow of weapons from the U.S. could dwindle-which would only increase Ukraine's reliance on its defense-technology startups to at least mitigate Russia's advantage.