Ukraine Reform Monitor No. 17

MILITARY NECESSITY IS THE MOTHER OF INVENTION
Since February 2022, Russia's ongoing offensive has forced Ukraine to adapt militarily – and spurred massive innovations in defense technology on the part of the country's armed forces. "Over the last three years since Russia's full-scale invasion, breakthroughs in defense technologies have had an outsized impact on the Ukrainian battlefield – first and foremost in the area of unmanned systems, but also within surrounding ecosystems such as systems software and counter-unmanned solutions," a new study from the Snake Island Institute, a Ukrainian military think tank, has detailed. Drone development, for instance, is taking place at a dramatic pace, with state and private industry collectively producing some 200,000 drones a month. These include both unmanned aerial platforms as well as unmanned ground vehicles, and entailing "battlefield-driven innovation" in things like vehicle armor, improvised weapons and "DIY anti-drone measures," the study notes.

While challenges remain, the overall picture is promising. "Ukraine's battlefield has become the world's most dynamic proving ground for defense technology," the study lays out. "[F]rom fiber-optic drones and acoustic counter-battery systems to AI-enabled targeting and mobile air defense platforms, the most valuable defense innovations today are being forged under fire." (Snake Island Institute, April 2025)

UKRAINIAN DRONES TAKE TO THE SEAS
In particular, Ukraine is now improving its marine drone capabilities, including the use of unmanned underwater vehicles. The capabilities of these vehicles include reconnaissance, patrol, and the laying of sea mines along enemy routes and ports. The vehicles operate on inertial navigation systems on the sea floor, and many are being outfitted with autonomous guidance systems. Ukraine also now has naval and riverine drones at its disposal, which are used against landing ships, port infrastructure, and other relevant enemy targets. They can also be deployed against large ships to distract and potentially cause significant damage. (Counteroffensive Pro, April 22, 2025)

A GRISLY BUSINESS
The grim reality of life during wartime has its own peculiar form of corruption, and Ukraine's funeral trade has become an increasingly profitable business. A new expose by the Wall Street Journal lays out how local government officials in Ukraine's east are profiting from the conflict in a novel way. "Police, emergency officials and medical workers are routinely paid by funeral homes for tips on imminent or actual deaths," the Journal details. While "[s]ome funeral homes pay officials to win large contracts for transporting or burying dead troops, according to officials with knowledge of the transactions." "Funeral homes [also] overcharge councils for soldiers' headstones and coffins and split the difference with officials, police say." (Wall Street Journal, May 9, 2025)

LEANING INTO DEFENSE TECH
According to the Director of the Ukrainian Ministry of Defense's procurement policy department, 1/3 of the ministry's defense budget is now going toward high-tech weapons. The official, Hlib Kanevskyi, notes that defense spending in this area is effectively dual use – benefiting not only the country's war effort but also its broader tech sector. The dynamism comes with its own challenges, however. During a recent governmental meeting on the issue, officials discussed the need to make the current procurement process more efficient, transparent, and competitive, and settle on what role private enterprises will play in the process.

Official goals for this year include a standardization of technical standards for drones to help streamline the development process between suppliers and the country's Defense Ministry. Back in March, it was reported that the U.S. and Ukraine are collaborating on the development of improved drones, and this sector is an area of intense focus for Kyiv. The country can already produce 5 million first-person-view (FPV) drones annually, but President Volodymyr Zelenskyy is aiming to scale up production still further. (The New Voice of Ukraine, April 21, 2025)