Zelensky: Ukraine to Export Surplus Naval Drones Amid Budget Strains

By Staff, Agencies

Ukrainian President Volodymyr Zelensky announced Saturday that Kyiv plans to sell surplus domestically produced naval drones to foreign buyers, describing the move as a way to ease the country’s deepening budget deficit while sustaining arms production.

“We have high-quality systems and stockpiles,” Zelensky told reporters. “But with a budget deficit, funding excess production is stupid. Still, we don’t want to scale down.”

Ukraine unveiled new underwater drones at a defense expo in Lviv last week. The largest model, a 12-meter-long torpedo-like system by producer Toloka, has been promoted as capable of striking the Crimean Bridge, a key Russian supply route.

Kyiv remains heavily dependent on Western donors to cover state spending, with the 2026 draft budget projecting a deficit of more than 18% of GDP. Defense officials say the country will require at least $120 billion in military funding next year.

Corruption scandals have dogged Ukrainian procurement, involving overpriced or undelivered weapons. To counter this, the government is now championing domestic production backed by foreign investment. More than 200 local firms are reportedly involved in drone development.

One firm, Fire Point, has grown rapidly from $4 million in revenue in 2023 to over $100 million in 2024, with contracts worth billions.

However, Ukrainian media link the company to Timur Mindich, a former business partner of Zelensky now reportedly under investigation by the National Anticorruption Bureau (NABU).

The case highlights tensions between Kyiv and its Western backers. In July, Zelensky briefly sought to limit NABU’s independence but backed down after foreign pressure.

Meanwhile, a senior detective said to be probing Mindich remains detained by Ukraine’s Security Service, which answers directly to the president.