Ukraine’s defence technology sector is making a bold statement at its largest-ever defence tech fair, positioning itself as a global leader in military innovation. The two-day event, held in the western city of Lviv, brought together arms executives and government officials to showcase Ukraine’s rapid advancements in countering Russian drone threats. Europe’s Commissioner for Defence, Andrius Kubilius, set the tone with a provocative declaration: “We need to forget Silicon Valley—it’s the past. Ukraine is the future.”
The event comes at a critical juncture, as recent incidents—such as the infiltration of Russian drones into NATO airspace—have exposed vulnerabilities in Western defence strategies. Kubilius highlighted the stark contrast between Ukraine’s cost-effective, high-efficiency drone countermeasures and the NATO response, which relied on expensive jets and missiles to down just a fraction of the intruding drones. “We understood a very simple truth: that we do not have those capabilities which Ukraine has, to fight against drone invasion,” he said.
Ukraine’s defence innovations are a testament to necessity driving invention. Faced with relentless Russian drone attacks, Ukrainian engineers have repurposed consumer technology, such as first-person-view drones, into lethal weapons. These improvised systems have proven devastatingly effective, downing over 80% of incoming Russian drones, according to AFP analysis of Kyiv’s air force data. The exhibition in Lviv buzzed with demonstrations of these technologies, including electronic jammers, interceptor drones, and futuristic robots designed for frontline logistics and medical evacuations.
Despite the impressive displays, foreign investment in Ukraine’s defence sector remains limited. Yaroslav Azhnyuk, CEO of The Fourth Law, which develops AI systems for attack drones, described the current level of investment as “peanuts.” He warned that the West risks underestimating the urgency of the technological arms race against Russia. “It’s like watching the sequel of *Don’t Look Up*,” he said, referencing the dystopian film about an impending catastrophe ignored by indifferent authorities.
The fair did see some progress, with foreign companies announcing over $100 million in investments in Ukrainian defence technology. AI drone company Swarmer secured the largest public deal, raising $15 million from US investors. However, this pales in comparison to Ukraine’s daily war expenditure of around $170 million.
Investment barriers persist, including strict export regulations that hinder collaboration. Oleksandr Yarmak, a commander within the Nemesis military unit, emphasised Ukraine’s readiness to share its battlefield-proven technologies but noted the challenges of doing so amid ongoing combat. “Ukraine has unique experience and technologies it’s ready to share,” he said. “But we have little time for this amid daily combat.”
To address these challenges, Ukraine is pursuing joint investments and co-production deals abroad. President Volodymyr Zelensky recently announced the first co-production agreement in Denmark, while more than 25 companies are relocating some production to Ukraine, according to Defence Minister Denys Shmygal. Event organiser Brave1 remains optimistic, viewing the investment process as a learning curve. “As time goes on, the investment rounds are getting bigger,” said Artem Moroz, head of investor relations at Brave1.
The Lviv fair underscores Ukraine’s determination to lead in defence innovation, even as it fights for survival. By showcasing its technological prowess and forging international partnerships, Ukraine is not only defending its sovereignty but also reshaping the future of military technology. The question now is whether the world will take notice—and act—in time.