Can Ukraine’s $30B drone deal with the U.S. reshape global defense alliances? Zelensky pushes forward with joint production plans amid expanding war efforts.
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| Zelensky’s $10–$30B drone deal with the U.S., plus joint drone production with Europe, signals a turning point in Ukraine’s military-industrial strategy. Image: CH |
Kyiv, Ukraine — July 26, 2025:
That’s the question facing global defense analysts after Ukrainian President Volodymyr Zelensky announced a sweeping agreement with the United States for the sale of Ukrainian-made drones—an arrangement he estimates could be worth between $10 billion and $30 billion.
Described as a “win-win,” the deal will see Washington purchase advanced Ukrainian drone systems while supplying Kyiv with American-made weapons. Speaking on July 24, Zelensky confirmed that the agreement had been reached in talks with U.S. President Donald Trump.
Oversight of the contract will fall to National Security and Defense Council Secretary Rustem Umerov, Defense Minister Denys Shmyhal, and presidential advisor Oleksandr Kamyshin. Meanwhile, the Trump administration has greenlit two additional arms sales to Ukraine totaling $330 million, underscoring a deepening strategic partnership.
But the implications go beyond procurement. Ukraine is using the moment to expand its defense industrial base beyond its borders. Zelensky revealed that Kyiv is in talks with Denmark, Norway, and Germany to establish joint weapons manufacturing hubs. Denmark has already agreed to create production lines for long-range drones with up to $300 million in funding.
“This will be a 50/50 partnership with the private sector,” Zelensky said. “They’ll produce drones for us during the war, and after that, for Denmark’s own stockpile.”
Since Russia’s full-scale invasion in 2022, Ukraine has dramatically scaled its domestic drone production across all military domains—air, sea, and land. The goal: produce 30,000 long-range drones by 2025.
Ukrainian innovations like the Palianytsia and Peklo missile drones have attracted international attention for their range and precision. In June, Ukraine launched Operation Spiderweb, a bold attack using FPV drones to hit four Russian air bases deep inside enemy territory—a demonstration of Ukraine’s growing asymmetric warfare capabilities.
The U.S. deal and Europe-based co-production efforts mark a pivotal shift in how smaller nations can leverage technology, private partnerships, and geopolitical alliances to scale wartime innovation.
As global power centers assess the implications, one thing is increasingly clear: the drone isn’t just a tool of modern warfare—it may be the foundation of tomorrow’s defense economy.