Kyiv: In a major move to deepen bilateral defense cooperation, the United States and Ukraine are in active discussions over a new investment deal focused on expanding Ukraine’s domestic drone manufacturing capabilities. Ukrainian Prime Minister Denys Shmyhal confirmed on Friday that negotiations are underway to facilitate American investments into Ukraine’s drone sector, with the added possibility of U.S. procurement of combat-tested Ukrainian drones.
The potential agreement aims to transform Ukraine into a key player in global drone production. “We are now in talks with our American partners not only about investments into the Ukrainian drone industry, but also about purchasing Ukrainian-made drones for U.S. defense needs,” Shmyhal said during a press briefing. The collaboration, according to Ukrainian officials, is set to significantly enhance the country’s defense self-sufficiency while supporting U.S. interests in acquiring battlefield-proven unmanned systems.
Ukrainian Economy Minister Yulia Svyrydenko added that the first board meeting of the newly formed U.S. Ukraine investment fund is scheduled before the end of summer. The fund, a joint venture announced earlier this year, was established to channel strategic investments into Ukraine's critical industries including defense, reconstruction, and technology. The drone sector has now emerged as a priority.
This diplomatic and industrial partnership has gained momentum following Ukrainian President Volodymyr Zelenskyy's recent proposal for a broader “mega-deal” with the United States. Under the proposed framework, Ukraine would supply drones to the U.S. in exchange for high-end military assistance. President Zelenskyy emphasized that discussions with President Trump have been positive and that both countries see potential in the plan.
Ukraine’s domestically produced drones have been instrumental in conducting deep strikes into Russian territory, often reaching up to 1,200 kilometers. Their cost-efficiency and effectiveness have drawn international attention, and Kyiv is keen to scale up production for both national defense and export purposes.
Security experts view this partnership as a natural progression in Ukraine’s evolving relationship with Washington. The U.S., by investing in Ukraine’s military-industrial base, not only reinforces a key ally’s defense posture but also gains access to cutting-edge drone technology honed in live combat situations.
The drone investment deal, if finalized, will mark a turning point in post-war defense innovation and cooperation. It is also expected to serve as a catalyst for economic revitalization in Ukraine’s war-affected industrial sectors. With both nations aligned on strategic goals, the forthcoming months may see Ukraine stepping firmly into the global spotlight as a hub for next-generation unmanned aerial systems.