
BLUF: Ukrainian manufacturers are developing AI-based, camera-based, and sensor-based detectors to stay one step ahead of Russian interception.
Russia is using FPV drones with LTE cards to attack deeper inside Ukraine.
UVAGA developers won the Eurodefense Tech Hackathon with their short-range FPV radar project.
And a draft law on reforming the State Service for Export Control has finally been agreed upon by the Ministry of Economy.
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THE BIG STORY: Countering Russian drone interceptors
Russia is copying Ukrainian tactics in countering drones, and they’ve begun mass-producing interceptor drones that target:
bomber drones;
reconnaissance drones; and
deep strike drones.
The most difficult to intercept are deep-strike drones, which can fly faster and lower than reconnaissance drones. Standard FPV interceptors work for bombers.

Russian FPV drone with a net to counter Mavic drones. Photo taken from the ‘Russian Engineer’ Telegram channel.
How to protect reconnaissance drones from interceptors
Ukrainian manufacturers are taking different approaches to this issue. Some are monitoring what the Russians themselves are doing when it comes to protecting their reconnaissance platforms, such as:
installing additional cameras to see incoming interceptors;
integrating passive proximity sensors that can trigger evasive maneuvers;
using manual control of Shaheds to change flight routes mid-flight.
"I think our manufacturers are also using simple technical solutions like sensors that force temporary changes to the planned flight path... We'll have all of this, some has already been implemented," a representative of the company that produces Rubaka deep strike drones told Counteroffensive.Pro.

Russian interceptor drone. Photo taken from Rostec.
Russia's strict vertical hierarchy allows it to quickly scale and mass-produce solutions, while the decentralized situation in Ukraine means that each manufacturer has its own approach.
TAF Industries manufactures the Babka reconnaissance drone. It’s made from the cheapest materials possible so that Russians spend more on the interceptor itself than the Ukrainians do on the drone, Vladyslav Avis, product manager for the Babka drone, told Counteroffensive.Pro.
One Babka costs around $3,000 to purchase, Oleksandr Yakovenko, CEO and founder of TAF Industries, told Counteroffensive.Pro.

Babka drone. Photo by Counteroffensive.Pro.
"Overall, we don't see the point in spending money on an additional camera. Our foam drones aren't detectable by radar, so it's hard to lock onto them," Yakovenko said.
Additionally, if the drone operator sees an interceptor through the camera, they can begin maneuvering to avoid it. In the case of Babka, for instance, the Russians have tried to shoot down such a drone four times but succeeded only once. It's a toss-up each time, though, Avis said.
How to protect bomber drones
Rubicon, the special Russian drone unit, recently claimed 10,000 destroyed targets since establishing the unit back in August 2024, 37.5 percent of which were drones. Of those, 22.3 percent were bomber drones, which Russians generally call 'Baba Yaga.'
The reported statistics suggest Russians are deliberately targeting bombers. In order to protect them, Ukrainians could install a net on top of the drone, like on ground vehicles. But realistically, FPV interceptors will be able to destroy this, Mykhailo Voroshylo, an independent engineer-designer, told Counteroffensive.Pro. In addition, this method wouldn’t be effective for interception from below.
Therefore, the method of evasion for bombers should be the same as it is for fixed-wing reconnaissance drones: giving commands to outmaneuver the interceptor. For this to work, however, the drone must be under manual control, and the operator must be able to monitor the surrounding situation.
In theory, this could be achieved with the help of an automated algorithm using a LIDAR sensor to scan the surrounding area. Then, when the LIDAR signal reflects off a target, the algorithm could issue an evasion command and drop additional payload.
With that in mind, protecting a bomber is significantly more difficult, according to Voroshylo. Interceptors are faster and much more maneuverable than bombers.
Depending on the system's complexity, developing a working solution could take from a couple of months to a year, said Voroshylo. Besides developing the technology, it also needs to be integrated into the drone, tested, and then put into mass production.
How to protect deep-strike drones
Russia has been making progress in developing countermeasures against Ukrainian long-range drones. They've moved from mobile fire groups to developing interceptors similar to Ukrainian versions (click here to read how Ukrainian interceptors work).
Russia’s deployment of interceptor drones increases the cost of targeting with deep-strike drones, a representative of the company that makes Rubaka said.
"We need mesh communication and optical navigation on board. In combined use, this will enable operational rerouting during deployment," the representative said.
Mesh communication allows drones to communicate with each other. If one disappears along the route, the others can quickly reroute to avoid being hit.
Optical navigation can allow the drone to fly lower. It works by comparing a pre-downloaded database of overhead imagery with what the camera sees in real time. By comparing the two, it can determine various landmarks and thus its own location.
Both mesh communications and optical navigation systems are used in some drones, but not simultaneously and on a very limited scale due to their price.
Using both of these technologies together would lower the probability of a deep-strike drone encountering an interceptor. But the cost of deep-strike drones would climb 50 percent, said the Rubaka representative.
Even that price hike would pay off, though, since fewer drones would then be needed to hit one target, the representative said. (Read more about how Ukraine conducts long-range strikes here).
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BUSINESS LUNCH TOPICS: What our reporting shows!
Ukraine gets the greenlight to work with the European Defence Fund
The European Parliament and the Council of the European Union reached an agreement that opens the door to Ukraine cooperating with the €7.3 billion European Defence Fund (EDF).
The provisional agreement gives Ukraine the chance to access EDF funding for defense projects. The EDF is the top fund in the EU for defense innovation. Ukraine now needs to do a lot of work to be competitive, but it's a very important first step, said Martin Jõesaar from the EU Defence Innovation Office in Kyiv. The country will gain access only after the agreement is formally approved. It could take 6–12 months for this decision to take effect.
The agreement also provides for the expansion of EU programs to include Ukraine, particularly allowing Ukraine to join the European Defence Technological and Industrial Base, as well as introducing changes to initiatives such as the Digital Europe Programme, Connecting Europe Facility, and others supporting dual-use technologies.
Russian Innovation Tracker: A drone mothership carrying LTE FPV
The Russians have modernized the cheap Molniya drone to use it as an FPV drone carrier, extending the FPV range from 10-15 km to over 40 km.
The FPV drone communication relies on LTE networks operated by Ukrainian operators, Mykhailo Voroshylo, an independent engineer-designer, told Counteroffensive.Pro. (Read our coverage on how Russia is taking control of the LTE network here.)

The moment of launching the FPV drone. Screenshot taken from a Russian Telegram channel.
Ukrainian cities close to the frontline are at risk of strikes by these contraptions. This is one of the ways Russia has attacked Kharkiv in eastern Ukraine. To counter this threat, Ukraine could install automatic turrets that can independently detect and target drones, Voroshylo said.
This could be difficult; the key is to develop an algorithm that isn’t dependent on operator skill. Moreover, there could be dozens of attacking drones, requiring dozens of operators to respond manually. This requires more effective detection systems for small targets.
Export control reform moves forward
The State Service for Export Control (SSEC) and the Ministry of Economy agreed on a draft law on SSEC reform (№549-IV) last week. It’s now under review by the MoD and other parts of the government, Oleg Tsylvyk, acting head of the SSEC, told Counteroffensive.Pro.
It has taken more than a year now to get the draft law to this point. But it’s an essential step for the SSEC to align with European regulations. It will also provide the service with a special status that will allow it to develop its own bylaws, instructions, and forms, some of which haven't been updated in decades.
The draft law still must be considered by the Verkhovna Rada once it is submitted by the Cabinet of Ministers. The deadline for the law’s passage is the end of the year.
Eurodefense Tech Hackathon announces its winners
The Eurodefense Tech Hackathon was held in Ukraine for the second time after it was first hosted in Lviv in May. This time, it took place in Kyiv, where over 200 engineers worked for four days and presented their solutions to counter drones.
The winners of the hackathon were:
1st place — The UVAGA team with their project ASPIS, a short-range FPV radar.
2nd place — Genova with an AI-powered OSINT pipeline that monitors open platforms, clusters events, and delivers real-time, explainable threat alerts with analyst-ready dashboards.
3rd place — the A1 team with a project focused on re-engaging demobilized pilots with disabilities.
Ukrainian orders/legislation we’re tracking:
By: Oksana Zabolotna
Development of special innovative technologies
Resolution of the Cabinet of Ministers of Ukraine №1354 from October 22, 2025
Why it’s important: This resolution enables the Ministry of Digital Transformation and the Innovation Development Fund to rapidly finance, procure, test, and implement new technological solutions for the defense forces.
Through simplified procedures and direct cooperation with the NEXT innovation unit (part of the Brave1 defense tech cluster), developers can quickly test their technologies under real combat conditions and adapt them to operational requirements.
Proposals:
A separate budget program has been introduced under the Ministry of Digital Transformation, with funds channelled through the Innovation Development Fund.
The Fund finances the procurement, testing, demonstration, and research of special innovative technologies, including those for defense needs.
Targeted procurements for the NEXT unit are allowed without competitive procedures, except computer and office equipment, tools, including power tools, vehicles (except for special-purpose, specialized, and military vehicles), power supply systems (batteries, generators, etc.)
Certain provisions on state property transfer and standard weapons-testing procedures do not apply.
The NEXT innovation unit is formalized as a platform for field testing, demonstrations, and technology re-engineering.
The Fund must submit monthly reports to the Ministry of Digital Transformation on the use of budget funds.
A unified pricing procedure, mandatory valuation, intermediary ban, and a 25 percent profit cap are established for domestic UAV and EW system producers.
Contracts are stable and may be amended only in defined circumstances; price increases due to supplier delays are prohibited.
Stage: Entered into force on October 24, 2025.
Initiator: Cabinet of Ministers of Ukraine.
What’s next: Implementation of the resolution.
ON THE MOVE: Professional movement, promotions and industry news.
Know someone in the defense tech space who has made a professional move? Drop us a line at [email protected]!
Viktoriia Yaremchuk, co-founder of Farsight Vision, was appointed as the head of Techosystem, a union of Ukraine’s tech ecosystem representatives.
Kateryna Rudeshko started a new job as a communication manager at Swisscontact, a Swiss foundation for technical cooperation. Previously, she worked at Chemonics International as a communication specialist.
Greg Eldridge has joined Milrem Robotics, a ground drone maker, as a sales representative for North America. Previously, he served in the U.S. Army as a field artillery officer.
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MUST READS:
Ukraine’s defense company, TAF Industries, has presented an EW system, the updated Kvazar 3M, the new Kvazar A. Also, they demonstrated the work of the spectrum analyzer TL Spectrum.

TAF Industries EW systems. Photo provided by the company.
Ukraine’s Wild Hornets drone maker has established a training center to train drone operators to counter Shahed drones using the STING interceptor. The training process will take only three days.
Russian tank maker Uralvagonzavod has announced a possible 50 percent cut in its workforce, according to E1, a Russian regional media outlet. By February 2026, the company will fire 10 percent of employees.
Ukraine’s Armed Forces will soon launch a new School of Instructors, which will improve the quality of military training and serve as a base for accumulating and transferring real combat experience.
Ukrainians converted a captured T‑62 tank into an armored personnel carrier. The tank’s 115 mm gun was removed, and a mesh frame was installed to protect against drones and shaped-charge munitions.
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