Wall Street Journal: Ukraine is betting on a free market economy to produce weapons to outperform Russia

The Wall Street Journal reported: The American newspaper said that Ukraine chose an unprecedented strategy to develop its military capabilities in the face of Russian military intervention, with human and economic resources many times greater than Ukraine’s.

 

The newspaper said – in the context of a report published today, Sunday – that Ukraine It adopted a model based on an open market economy and technological innovation rather than trying to keep up with Russia in mass production of weapons; Which led to a boom in startup companies producing drones and advanced weapons systems.

 

It saw this Ukrainian approach as “a bet on innovation and an open market to surpass Russian superiority in terms of resources and production.” “Traditional”… explaining that instead of trying to keep up with Moscow in production volume, Kiev is trying to benefit from the spirit of entrepreneurship and ease government regulations to rapidly boost the defense technology sector. Growth.

 

The Wall Street Journal reported: That with US President-elect Donald Trump about to take office next January, the flow of weapons from the United States may diminish; Which may increase Ukraine’s dependence on its emerging companies in the field of defense technology, to at least compensate for Russian superiority.

 

The American newspaper quoted Ukrainian officials as saying: Most of these companies focus on producing Drones have become a crucial tool in modern warfare, and this bet on the open market has prompted companies such as Arc Robotics. To achieve tangible achievements in a short time. 

 

ARC Robotics, founded by Andrei Bondarenko, began developing ground drones only one month after the Russian military intervention. With personal financing and without the need for government approvals, today, after more than a year, the company has raised more than a million dollars from investors and issued 20 updated versions of its original aircraft, and is working on a communications system. Advanced.

 

In the same context.. Mykhailo Fedorov, Ukrainian Minister of Digital Transformation, said: “To defeat Russia, we cannot just repeat what they are doing, they have more money and more factories.” Therefore, we must rely on innovation and entrepreneurs.”

 

Fedorov added: “This is a race, and few companies can keep up with the rapid changes in war requirements. This is what makes betting on the open market the most appropriate option.”

 

The American newspaper added, saying: While the war helped accelerate the development of new weapons systems, the mass production process became a major challenge. …citing the problems facing emerging companies in Ukraine, such as power outages, high costs of operating generators, and the difficulty of finding safe production sites due to the risk of Russian attacks.

 

She pointed out that although… the government The Ukrainian government has canceled customs duties on drones and ammunition, but some companies, such as Arc Robotics, are considering moving production to Poland to avoid these challenges.

 

She added that the Ukrainian government It also relies on a new rewards system based on evaluating the effectiveness of drones in the field, and the system awards points to military units based on the success of strikes; This allows it to order more aircraft, and this data is used to help the government determine the best models for future production. 

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