For the first time, Vyriy Drone has handed over a batch of localized FPV drones assembled entirely from Ukrainian-made components.

This was reported by Militarnyi’s journalists at the company’s presentation.

The batch—comprising a thousand 8-inch thermal imaging drones commissioned by the State Service of Special Communications and Information Protection (SSSCIP)—was built using only Ukrainian parts, including cameras and other electronics. These drones will be supplied to the military as part of the Army of Drones project.

The manufacturers said that the contract for the supply of drones did not require full localization, but the decision to transition entirely to Ukrainian components was culmination of a long-term strategy of the company, which had been working for two years to replace foreign components.

Read more about the development of production and the rejection of Chinese spare parts in the article “No More “Made in China”: Ukraine Inches Closer to Self-Sufficient FPV Drone Manufacturing”

Vyriy Drone stated that it will continue to supply such drones under future contracts. To achieve full localization, the company has developed domestic production of frames, initiation boards, flight controllers, and radio control systems. Other critical components, such as video transmitters and cameras, were sourced from Ukrainian manufacturers D1 and Odd Systems.

Thanks to sound economic policies among Ukrainian manufacturers, these locally produced drones are cheaper than comparable models assembled with Chinese components, which typically cost around UAH 30,000 per unit.

Abandoning the use of Chinese components is extremely important given China’s tightening export controls on the sale of goods that can be used in the production of drones.

Deputy Defense Minister, Captain Valeriy Churkin told Militarnyi that the ministry is working to prioritize local production in the field of unmanned systems.

“There have already been meetings on creating privileges for manufacturers in terms of the tax code, they have been discussed. I think in a month or two, they will be agreed upon. Most likely, these will be benefits for Ukrainian manufacturers in the field of high-tech products,” Churkin said.

He added that the ministry plans to scale up localized production as soon as the standardization of drones in the Armed Forces is completed, which is already underway.

As a reminder, assembling drones from Chinese parts currently has a number of significant economic advantages over local production due to bills that abolish VAT and import duties on components during martial law. Instead, the import of raw materials and taxation remain in place for local production.

Last year, Vyriy Drone told Militarnyi that in just six months, from March to August, it lost about 100 million hryvnias in taxation on the purchase of components.