BLUF: Several platforms in Ukraine offer foreign companies the chance to test out their defense products, including Test in Ukraine, IRON Global, and Iron Range, which provide trials in real battlefield conditions.
We have news on the furor around Fire Point, the drone/missile developer behind the Flamingo missile. We reviewed documents shedding light on the NABU investigation, revealing that six defense companies have been questioned.
Customs reform is at risk of missing its December deadline due to a prolonged selection process for the head of the State Customs Service.
Swarmer, a swarming drone technology company, has secured $15 million in investment, the biggest round for the Ukrainian miltech. And Ukrainian defense startup Falcons secured investment from Green Flag Ventures.
THE BIG STORY: How foreign weapons are put to the test in Ukraine
Ukraine has become a popular testing ground for new foreign defense products and technologies, with many companies taking advantage of the real battlefield conditions in the country to try out their products.
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Most commonly, this is done to validate products for use in the country of manufacture or to prepare them for sale, shipment, or delivery as aid to the Ukrainian army.
The regulatory process for testing defense goods consists of several stages, said Nadiia Yermiichuk of the Axon Partners consulting group. This includes importing products into Ukraine, the testing process, and the return (export).
Testing foreign products at a training ground in Ukraine. Photo by Kelly Crawford.
There are several platforms that facilitate testing in Ukraine:
Test in Ukraine - an initiative of the Brave1 defense cluster that handles the testing process, from contacting training grounds and military units to collecting feedback from the military. Manufacturers are responsible for the legal formalities involved in importing and exporting the goods from Ukraine.
IRON Lviv Tech Cluster, an association of defense manufacturers, launched the IRON Global project in May 2025. This new project aims to bring together defense companies and European experts to jointly develop and test solutions based on Ukrainian battlefield experience. All participants have access to a testing ground where tests can be conducted without the use of combat units.
The Iron Range, initially established by the Ukrainian government to test Ukrainian products, is also open to foreign companies. If a foreign manufacturer is interested in supplying products to Ukraine, they can conduct tests, obtain an official conclusion on the product's performance, and use it to make an offer to Ukraine’s Defense Ministry.
It is also possible for foreign companies to open a subsidiary production facility in Ukraine, said Maksym Cherkis of Stark Defense, a German defense company developing drones and AI solutions. The company would then have the opportunity to test its products. A company that develops unmanned vehicles, for instance, would submit an application to the Unmanned Systems Forces Command for a flight permit, and then receive official permission to fly in a specific region.
Counteroffensive.Pro is deeply familiar with the process for testing products, as well as research on Ukrainian defense technology. Think we’d be a useful partner? Email us here!
Compliance standards for testing in Ukraine
To bring foreign military or dual-use goods into Ukraine, companies must comply with Ukrainian legislation. The Law on State Control of International Transfers of Military and Dual-Use Goods provides foreign entities with the right to import and export such items for testing purposes. The main authority responsible for issuing the relevant permits and conclusions is the State Service for Export Control (SSEC).
It is also important to note that a simplified import procedure is in effect during martial law. It applies to a fairly wide range of goods and does not require a permit from the SSEC.
However, if the import is carried out specifically for R&D purposes, these products are not covered by preferential customs exemptions. This actually increases the final cost, Cherkis said.
In addition to Ukrainian regulations, foreign companies must also consider the export legislation of their own countries. Companies must also undergo screening against sanctions lists and be able to prove the legitimacy of the end user.
Photo of the ground drone at Iron Demo 2025. Photo by IRON Lviv Tech Cluster.
Pros/cons of testing products in Ukraine
Ukraine offers other advantages that are difficult to find in Europe.
In Germany, for example, drones undergo only basic flight tests, but there are strict restrictions on airspace usage, Cherkis said. Flights are allowed only for licensed pilots, at limited altitudes up to 300 meters, and within a small radius of 2–3 km. This makes it difficult to test flight range and prevents the full testing of hardware functionality.
Moreover, in Europe, it is impossible to test a product’s resilience to electronic warfare or simulate GPS signal loss, both of which are important aspects of drone evaluation.
Testing in Ukraine is more attractive, but there are still airspace regulations to be aware of. During an air raid alert, flights are prohibited for everyone except the military, and even after the alert ends, there may still be situations where E.W. systems remain active. In such cases, even with flight authorization, active E.W. systems can interfere with GPS or communications, creating uncertain conditions.
With that in mind, if a foreign company wants to test its product in Ukraine, it should:
Find a partner in Ukraine (such as a defense firm or Counteroffensive.Pro’s consulting arm), or choose a platform where the company wants to conduct testing.
Research export regulations in both the foreign country and Ukraine.
Prepare necessary documents and get the product ready for transportation.
Conduct testing in Ukraine and collect feedback.
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BUSINESS LUNCH TOPICS: What our reporting shows!
What we’ve learned about the Fire Point-Flamingo fiasco:
The Ukrainian defense sector has been deeply polarized by a Kyiv Independent story about Fire Point, the long-range drone and missile manufacturer that produces the FP-1 and the Flamingo.
KI reported that investigators are probing possible corruption, and whether an associate of Zelenskyy may be the ultimate owner of the company. While establishing that questions have been raised, the story did not provide evidence for the underlying allegations.
We dug into the story, and to our surprise, many of those most supportive of Fire Point were people who have a strong record of fighting corruption.
Disclosure: The author of the KI story, Kollen Post, was previously an editor at Counteroffensive.Pro.
What we’ve found through our reporting:
The National Anti-Corruption Bureau of Ukraine (NABU) is conducting a much wider investigation into government officials, and as part of that process has issued inquiries to a half-dozen Ukrainian domestic drone manufacturers (Fire Point being one of them).
The focus is on government officials, and whether, colluding with unmanned systems companies, they may have artificially inflated production costs.
A letter from NABU to Fire Point, which we authenticated through NABU. We redacted the personal details of the detective who wrote it, as well as the company’s contact information. Full letter in Ukrainian here.
NABU held a previously-unreported in-person meeting with representatives of various defense companies in mid-August, per multiple participants from several organizations. Organized by defense industry association Tech Force in UA, the NABU representatives assured defense companies they were not trying to harm their businesses with the probe.
Fire Point said it began receiving the vast majority of its Ukrainian government contracts after a competitive 2024 drone test involving five domestic manufacturers (as opposed to through some alleged political connection).
We reviewed the results of that drone test, which the Ministry of Defense’s State Scientific Research Institute of Armament and Military Equipment Testing and Certification documented in a 77-page report. It concluded Fire Point’s had been the best drone in that exercise.
Fire Point claimed that the U.S. Embassy had helped to organize this testing. The embassy declined to comment. “I've always had really positive interactions and a positive impression of Fire Point,” said a former U.S. official familiar with Fire Point’s activities. “Their FP-1 drones are extremely effective.”Fire Point’s CTO, Iryna Terekh, said the company is in the midst of conducting an audit with Deloitte, and pledged to release the results this fall when it’s completed.
Fire Point’s Terekh denied ownership by Timur Mindich, the Zelenskyy associate that KI suggested might be the ultimate beneficiary and political connection for the company.
2. Our position on Fire Point threats:
Following the Kyiv Independent’s story, the publication’s editor in chief wrote the following:
“The head of Fire Point informed us, the editorial staff, that he would file a statement with the SBU about our commission of a crime. On the articles about high treason and aiding an aggressor state… I consider this threat to be nothing more than an attempt to put pressure on the editorial staff — with the aim not only to scare us, but also other journalists who may be interested in the company's activities.”
We wholeheartedly support the right of all news outlets to investigate allegations without legal threats being levied against them. And we strongly oppose any actions that might stifle journalistic inquiry.
A transparent, dynamic Ukrainian defense tech sector requires and is aided by a free press.
3. Customs reform may miss its deadline
Last year, the Verkhovna Rada voted for Law No.3977-IX, which provides for a customs reboot. One of the key steps is the selection of a new head of the State Customs Service (SCS) through a competitive process by December 2025.
According to the law, the reboot will take place in the following order:
Creation of a commission to select the head of the SCS through an open competition (established in early August);
Selection of the new head of the SCS;
Three months after selecting the head, the establishment of the certification commissions;
Beginning of the customs officers' re-certification process.
In early August, a competitive commission for selecting the head of the State Customs Service was formed. However, the commission has not yet announced an open competition, Danylo Hetmantsev, Chairman of the Verkhovna Rada Committee on Finance, Tax and Customs Policy, told Counteroffensive.Pro.
Because of this, there's a risk that the head won't be appointed by the specified deadline, Hetmantsev said. This could set back the whole timeline for customs reform.
The re-certification process itself will be conducted in two stages: first, the management of the State Customs Service and customs offices, and then the remaining officials.
"Given that currently more than 10,000 officials work in customs authorities, the law provides that certification must be completed within 36 months from the date of appointment of the newly elected head of the State Customs Service," Hetmantsev said.
4. Swarmer secured biggest investments in Ukrainian miltech
Swarmer, a Ukrainian swarming drone technology, has secured $15 million in investments. The U.S.-based Broadband Capital Investments led the new round. Also, Radius Capital, Green Flag Ventures, D3 Venture Capital, and Network VC participated in the round.
The startup specializes in enabling the operation of up to 25 drones by one operator. The operator’s role will be primarily in choosing targets for attack, and drones will find the target independently.
Fundraised money is planned to be allocated to scale the production and to develop new products, Eveline Buchatskiy, managing partner at D3 Venture Capital, told Counteroffensive.Pro. The founder’s vision was one of the main reasons to invest in Swarmer, she said.
5. Falcons secured investment from Green Flag Ventures
Ukrainian startup Falcons, which develops electronic warfare and direction-finding systems, has secured investment from the U.S.-based Green Flag Ventures. The total amount of investments has not been disclosed. However, Green Flag Ventures previously said its investments in early-stage startups typically range from $200,000 to $1.2 million.
ETER, direction finder set. Photo provided by Falcons
Part of the investment will be allocated for research of foreign markets, their requirements, and challenges in production chains, Svitlana Braslavska, co-founder of Falcons, told Counteroffensive.Pro. The company will also develop new products and expand production capacity.
Ukrainian orders/legislation we’re tracking:
By: Oksana Zabolotna
Adding Ukraine’s Defense Intelligence to the list of specific state aviation entities
Draft Law №13385 of June 18, 2025
Why it’s important: Until now, military intelligence lacked such a status, even though it operates aircraft used to perform tasks related to ensuring national security.
Proposals:
The draft law proposes amendments to the Air Code of Ukraine that would add HUR to the list of entities related to state aviation.
State regulation of aviation activities within HUR will be carried out in line with the requirements of the Law ‘On Intelligence.’
Stage: Sent for signature to the president of Ukraine.
Initiator: A group of 34 Members of Parliament from the factions ‘Servant of the People,’ ‘Holos,’ ‘Batkivshchyna,’ and ‘European Solidarity,’ led by Fedir Venislavskyi.
What’s next: Once signed by the president, the law will enter into force.
ON THE MOVE:
Know someone in the defense tech space who has made a professional move? Drop us a line at [email protected]!
David Aloyan was appointed deputy secretary of the National Security and Defense Council of Ukraine for defense-related issues. Previously, he worked at the Ministry of Strategic Industries.
James Lythgoe was promoted to a new position as head of Eastern Europe at Shield AI, an autonomous drone maker. Previously, he headed the Ukrainian office.
Dmytro Khasapov has joined the board of directors of Tech Force in UA, a private association of defense producers. He is also the CEO of Ukrspecsystems, a drone maker.
Yaroslav Azhnyuk, founder of The Fourth Law, an autonomous systems developer, and Odd Systems, a drone and optics maker, has joined the Board of Directors of Tech Force in UA, a private defense association.
30 SECOND ELEVATOR PITCH:
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They offer three products: FSV Mapper for preprocessing and transmitting photos, videos, and streams to the FSV platform. The platform converts optical feeds into 2D and 3D digital twins to provide a comprehensive situational overview. The FSV APP utilizes 3D data to simulate real-world operations and create maps of the environment.
“We are fundraising more than $4 million for deepening personalization for customers, creating an ecosystem, preparing for global expansion, and collaborating with UAV and UGV manufacturers,” said Viktoriia Yaremchuk, co-founder of Farsight Vision.
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Vyriy Drones and The Fourth Law have launched mass production of autonomous FPV drones. They will be equipped with the TFL-1 terminal guidance module developed by The Fourth Law, which increases the effectiveness of the drones 2–4 times, said The Fourth Law founder Yaroslav Azhnyuk. His colleage shared this information with Counteroffensive.Pro.
NABU closed an investigation into Archer, a thermal imaging scope producer, noting that sufficient evidence had not been found to prove that actions by Archer and MoD officials constituted a criminal offense.
Russian company KB Valkiriya has developed a mothership-drone in three versions that can be controlled via Starlink or a mobile network. It can carry two FPV drones and also operate in reconnaissance mode.
Ukrainian Defense Minister Denys Shmyhal has met with KNDS Deutschland representatives to discuss the joint production of the Gepard air defense system.
Great Britain will produce Ukrainian interceptor drones as part of the newly established OCTOPUS project. The production line's capacity will be measured in thousands per month.
Ukrainian Armory, an armored vehicle producer, has supplied the Ukrainian military with over 1,000 armored vehicles since the full-scale invasion.
Ukrspecsystems, a drone maker, unveiled an updated version of MINI SHARK 2025, a reconnaissance drone. The range was improved from 35 to 60 km, and operational time in the air was doubled to 3.45 hours.
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