Advanced Ukrainian Defence Technologies of Interest to Foreign Investors

Analysis by Consortium for Defence Information

Throughout Russia’s full-scale war against Ukraine, domestic engineers and designers have demonstrated – and continue to sustain – a high pace of innovation, integrating breakthrough technological solutions into existing military equipment. Some of these developments were initiated between 2014 and 2022, laying the groundwork for significant advancements in the period from 2022 to 2025.

Given this, we highlight the most impactful projects and investment opportunities that could substantially enhance Ukraine’s defence capabilities. The key strategic interest remains the ability to strike enemy targets at long range while securing a decisive technological edge on the battlefield. This is not only about immediate military needs but also about ensuring Ukraine’s long-term resilience against Russian aggression beyond the current phase of active combat.

Area 1: Ukrainian-Made Missiles and Rocket Systems

Key investment opportunities include:

• Funding to bring domestically produced ballistic missiles into serial production while integrating technological solutions from leading Western developers.
• Expanding the serial production of subsonic ground-launched cruise missiles, based on the R-360 Neptune missile.
• Investing in serial production of air defence missile systems and a new surface-to-air missile developed by the State Design Bureau “Luch,” potentially incorporating Western technologies.
• Supporting the mass production of a modernized Ukrainian multiple launch rocket system, the Vilkha-M project, which upgrades the Vilkha MLRS with a precision-guided 300mm round. Developed from the Soviet-era 9K58 Smerch, it entered Ukrainian service in 2018 and is being enhanced to achieve a range of 130-150 km.
• Financing the serial production of MLRS and their ammunition under the Typhoon-1 project, which modernizes the 122mm BM-21 Grad launchers with new high-explosive and thermobaric rockets.
• Investing in the development and serial production of the Typhoon-2 project, which involves new high-precision, long-range 227mm rockets and their launch platforms.
• Funding the serial production of Ukraine’s compact cruise missile Palianytsia.
• Supporting the serial production of a new Ukrainian compact ballistic missile FP-7.

It is crucial to note that Western financial support and technological contributions for Ukraine’s missile program are of existential importance for the country’s long-term security.

Area 2: Unmanned Systems and Counter-Drone/Missiles Technologies

Key investment directions include:

• Funding the serial production of long-range strike UAVs (500 km and beyond) such as Liutyi, Morok, UJ-22, and UJ-26 Bober. By the end of 2024, the New Energy of Ukraine Alliance plans to introduce a drone with a 2,000-2,500 km range carrying a 100 kg warhead.
• Supporting the development and serial production of drone swarm technology, which integrates AI to coordinate multiple drones simultaneously. Tests conducted in late October 2024 demonstrated that each drone within the swarm can have an independent mission. The Ukrainian company Swarmer leads this initiative.
• Investing in the production of high-precision munitions for tactical UAVs, designed for airstrikes from 1 km or higher. Mass production of such munitions is expected to drastically improve drone battlefield efficiency.
• Funding serial production of UAV components to secure supply chains for various Ukrainian drone models.
• Supporting the production of enhanced-range combat UAVs, such as Black Widow, Nemesis (20 km range), Hummel (2 kg payload over 20 km), and others.
• Investing in interceptor drones for targeting enemy UAVs, helicopters, and other aerial threats. In July 2024, Ukraine successfully tested the Bullet jet-powered drone, designed to counter reconnaissance and strike UAVs as well as enemy helicopters. SkyAssist is developing an additional drone fighter based on the Sirko series, while Wild Hornets is finalizing Sting, a specialized anti-air UAV, set for mass production by late 2024.
• Supporting the development and production of unmanned attack helicopters. A prototype was first showcased in 2021 as the RZ-500 by Ramzai reconnaissance-attack UAV helicopter, with a tactical range of 60-80 km and precision anti-tank capabilities.
• Investing in the development and production of mini-class unmanned submarines. The New Energy of Ukraine Alliance has been developing such systems alongside AI-powered target recognition for air and land platforms.
• Funding the serial production of robotic ground combat systems for assault operations and remote-controlled mine-laying platforms. Examples include the Liut assault system, Ratel S kamikaze robot, and Mangust robotic mine-laying platform.
• Financing the production of unmanned naval vessels and marine robotic systems.

Area 3: Other Advanced Ukrainian Defence Technologies

Additional investment opportunities include:

• Expanding the production of electronic warfare (EW) systems, including Bukovel-AD, Anklav, Khmara, and mobile EW platforms Polonez and Nota. Ukrainian companies such as Proximus, Tritel, Infozahyst, and Ukrspectechnika continue to develop new EW solutions.
• Funding the serial production of signals intelligence (SIGINT) stations, such as Arkhont-S, and supporting the development of drone- and ground-based SIGINT robotics platforms.
• Expanding the production of mortars and ammunition, with private manufacturers like Ukrainian Armor producing all major mortar calibers (60/82/120mm). This company also showcased the Smereka self-propelled mortar in 2021, comparable to Poland’s Rak system, presenting an investment opportunity for serial production.
• Supporting the mass production of mines. Ukraine has developed modern analogs of Soviet-era anti-tank and anti-personnel mines, with frontline engineers even producing new mines directly within military units.
• Financing serial production of self-propelled howitzers (SPHs) such as the Bohdana, following the “Danish model”. By the end of 2024, Ukraine increased Bohdana production capacity up to 20 units per month.
• Supporting the production of NATO- and Soviet-caliber artillery and tank ammunition, which is currently being manufactured by both state-owned and private enterprises.
• Funding serial production of man-portable air-defense systems (MANPADS). Since 2020, Ukraine has upgraded Igla-1 system to the Igla-1M variant. Thermal imaging sights, developed by Tekhnari Design Bureau, can be externally integrated into MANPADS. Additionally, there is potential for localizing the production of FIM-92 Stinger systems in Ukraine.
• Investing in the production of Stugna, Korsar and self-propelled anti-tank missile systems (ATGMs) such as Shturm-SM. Ukrainian ATGMs have demonstrated effectiveness on the battlefield, even against enemy attack helicopters.

Ukraine’s defence industry sector presents lucrative investment opportunities, particularly in missile and drone technologies, counter-drone systems, and electronic warfare. Many of these innovations are already combat-proven, with additional projects on the verge of serial production. Western partnerships – whether through direct funding, joint ventures, or technology transfer – will be critical in scaling these capabilities and ensuring Ukraine maintains a decisive technological edge in its fight for sovereignty and security.