Ukraine Courts Foreign Cash For Military ‘Silicon Valley’

At the opening of Ukraine’s biggest defence tech fair, arms executives and government officials were welcomed by a giant movie screen blaring an action-style trailer with heavy base undertones.

The two-day event is part of Ukraine’s bid to position itself as a leader in military innovation and encourage hesitant foreign investment, more than three and a half years into the Russian invasion.

“We need to forget Silicon Valley — it’s the past. Ukraine is the future,” Europe’s Commissioner for Defence Andrius Kubilius said at the event, which began Tuesday and the details of which were only made public Friday.

The crowd, gathered in the western city of Lviv, applauded.

The idea that Ukraine’s Western allies could learn from Kyiv has taken on new weight after more than a dozen Russian drones flew through Poland’s airspace last week.

Moscow has denied targeting the NATO member, but for some, the incident exposed the alliance’s weaknesses.

Seen from Kyiv, the scrambling of jets and firing of advanced missiles to try to down the drones was an outdated — and far too expensive — response.

“We understood a very simple truth: that we do not have those capabilities which Ukraine has, to fight against drone invasion,” Kubilius said.

To counter nightly Russian drone attacks, Ukraine has developed a suite of cheap and effective tools, like electronic jammers and interceptor drones.

It has been downing more than 80 percent of the thousands of Russian drones that are fired at it every month, AFP analysis of Kyiv’s air force data shows.

On the other hand, the scrambled NATO forces shot down under five of the 20-odd that flew through Poland last week.

Kyiv’s strategy has been to repurpose basic consumer tech for military purposes — such as strapping explosives to small first-person-view drones that are used to film aerial landscapes or stunts.

Their unmistakable buzz filled the exhibition zone at the Lviv fair.

Futuristic robots resembling oversized remote-controlled cars — designed to ferry weapons to the front or evacuate wounded soldiers from the battlefield — were also on display.

Adding to the Silicon Valley vibe, young engineers hovered over sleek screens showing how they could be integrated with artificial intelligence.

“This is a display to show that Ukraine is tech-savvy and growing. That you need to be in Ukraine if you’re in defence tech,” said Thomas Moreau from the French defence trade association GICAT.

But beyond flashy displays, there is still a long way to go.

Foreign investment in Ukraine’s military tech is “peanuts,” said Yaroslav Azhnyuk, the CEO of Fourth Law, which makes AI systems for attack drones.

He said the West was missing the urgency of the situation, stressing the only way to beat Russia was by winning the technological arms race.

“It’s like watching the sequel of ‘Don’t Look Up’,” he said, referring to the dystopian movie where scientists try to alert oblivious and disinterested officials about an imminent catastrophe.

Foreign companies announced plans to invest over $100 million in Ukrainian defence technology during the event, organiser Brave1, a government platform overseeing military innovation, said.

AI drone company Swarmer closed the largest public deal, securing $15 million from US investors.

For comparison, an MP said recently that Ukraine is spending some $170 million a day on the war.

Attendees told AFP that investment faces barriers, including strict regulations that de facto ban exports amid shortages.

“Ukraine has unique experience and technologies it’s ready to share,” said Oleksandr Yarmak, a commander within the Nemesis military unit.

“But we have little time for this amid daily combat,” he added.

Officials are keen to share their knowledge of battlefield-proven tech, and Kyiv is pushing for other solutions — like joint investments abroad.

Ukraine and Poland on Thursday created a group to share training and operational knowledge on drone threats.

President Volodymyr Zelensky recently announced the first co-production deal in Denmark, while more than 25 companies are moving some production to Ukraine, Defence Minister Denys Shmygal said Friday.

Event organiser Brave1 is patient.

“It’s a learning curve that we are going through,” Artem Moroz, its head of investor relations, told AFP.

“As time goes on, the investment rounds are getting bigger.”