Ukraine Sees US Looking for Technology Transfers in Drone Deal

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(Bloomberg) — Kyiv has said that the US is seeking the transfer of technology and access to intellectual property rights from Ukraine as part of a drone deal that is awaiting approval at the highest political level, a person familiar with the matter said.

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The US Department of Defense has asked to test a range of Ukrainian defense products, including drones and electronic warfare systems, as Washington is considering their potential purchase for military use, the official said. The agreement has not been finalized, the person added, speaking on condition of anonymity because the discussions are private.

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Growing interest from the US shows how the world’s largest military is looking to tap into the drone expertise that Ukraine has acquired over four years fighting against the Russian invasion. Through a combination of new technology and tactics, Kyiv’s forces have been able to strike deep into Russia territory, to slow and in some cases even reverse battlefield gains by Moscow’s bigger army, and to inflict significant damage on oil facilities that help finance the Kremlin’s war machine.

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During talks with the US, Ukraine has argued that its weapons have already been battle-tested at scale, but Washington wants to evaluate the products domestically with its own forces before moving ahead, the person said. The US also appears interested in getting access to critical technologies and, potentially, intellectual property rights that would allow it to replicate the kit, according to the person.

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Earlier this month, the US sent Kyiv a draft letter of intent requesting tests of Ukrainian military products, with potential contracts to follow if the systems are selected, another person familiar with the matter said. The letter doesn’t spell out the details or scope of a potential accord and falls short of an outright deal, the person said, asking not to be identified because they were not authorized to speak publicly. 

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“As a result of the work with the Department of State and the Pentagon, a draft framework document has been developed and is currently being reviewed by both sides at different institutional levels,” Ukrainian Ambassador to the US Olha Stefanishyna said in a statement. “We are committed to mutually beneficial cooperation that will enhance the strength of our armed forces.”

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The Ukrainian embassy declined to address specific questions about technology transfer arrangements. The Pentagon didn’t immediately respond to a request for comment.

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Kyiv and Washington began negotiating a deal for supplies of Ukrainian weapons to the US several years ago, after the former Soviet nation came under Russian attack.

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Since then, Ukraine has rapidly developed advanced military technologies, most notably drones, which turned out to be critical in the war. Military planners in Kyiv are betting on these technologies to be able to respond against a far larger adversary in terms of both manpower and economic resources.

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‘Ours Does Not’

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The advances have also won plaudits from the US administration. Army Secretary Dan Driscoll has called the operating system for the Ukrainian network of drones “absolutely incredible.”