A TUG-OF-WAR OVER ANTI-CORRUPTION
The independence of Ukraine's main bodies of anti-corruption policing, the National Anti-Corruption Bureau (NABU) and Specialized Anti-Corruption Prosecutor's Office (SAP), came under threat in mid-July, when President Zelenskyy abruptly signed into law a bill that essentially put the organizations under the control of the prosecutor general, a presidential appointee position. The bill's signing came a day after the SBU raided the NABU as part of investigations against possible Russian moles working at the agency. Zelenskyy justified the step, saying that such a change was needed due to inefficiencies within the anti-corruption bodies and because cases were "lying dormant."
The step, however, ignited a political firestorm. Protests broke out around the country, while Western officials roundly condemned the move as a step backward in Ukraine's anti-corruption drive. In response, Zelensky gave a public address in which he asserted that both agencies would continue to operate, but needed their power to be curtailed until they were purged of "Russian influence."
Ultimately, however, the public outrage and international pressure proved too intense. Zelenskyy introduced a new legislative measure that would "strengthen the independence of anti-corruption institutions" – effectively erasing the first bill's provisions. NABU and SAP were reported to have played a role in the new bill's formulation. (BBC, July 22, 2025; Meduza, July 24, 2025)
A DEFENSE CONSOLIDATION
In mid-July, President Zelenskyy announced a reshuffling in his administration's handling of defense matters. Until the announcement, the country's Ministry of Strategic Industries had been a standalone part of the Ukrainian government, responsible for industry regulations, maintaining a roster of key defense firms, and connecting domestic manufacturers with the Ministry of Defense (MoD). Going forward, however, the Ministry of Strategic Industries will be folded into the MoD, with the beefed-up entity headed by former Prime Minister Denis Shmyhal.
The goal for the Ukrainian government, and specifically for incoming Prime Minister Yuliia Svyrydenko, is to expand defense industry in order to have 50% of weapons used on the front lines be made domestically over the next six months. To attain this objective, Ukraine's government is embracing the Danish model as a means to grow its domestic industrial base. It has not yet indicated plans to alter its export controls, however (Counteroffensive Pro, July 16, 2025)
UKRAINE'S DRONE SURGE
Also in July, Ukraine took significant steps to bolster its cooperation with the West in the domain of drone production. One such milestone was the inking of a deal with Swift Beat, a company led by former Google CEO Eric Schmidt, for the joint manufacture of hundreds of thousands of drones. Additionally, drone producer UKRSPECSYSTEMS recently opened a Ukraine-based facility that could service damaged, foreign-made drones – a capability which will help drive down costs and waiting times.
These developments are part of ongoing, explosive growth on the part of Ukraine's drone industry. In the past twelve months, the country's drone production is estimated to have grown by over 900%. Innovations include the creation of drones like the "Ursula," a one-meter riverine drone for use in operations on rivers, canals, and other shallow water areas that are mostly inaccessible to regular naval ships. "Ursula" can operate as a naval mine, carry out reconnaissance missions, or serve as a launching pad for "first person view," or FPV, drones. (Snake Island Institute, July 2025)
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