(L/R) Canadian Prime Minister Mark Carney and Ukrainian President Volodymyr Zelenskyy attend a meeting during the Group of Seven (G7) Summit at the Pomeroy Kananaskis Mountain Lodge in Kananaskis, Alberta, Canada on June 17, 2025. Canadian Prime Minister Mark Carney on Tuesday announced Can$2 billion ($1.47bn) of military support including drones and helicopters for Ukraine as he hosted President Volodymyr Zelensky at a G7 summit. Carney vowed "total solidarity with Ukraine" as he also unveiled further sanctions on Russia in an effort to impose "maximum pressure" on President Vladimir Putin over the war. (Photo by Ludovic MARIN / AFP) (Photo by LUDOVIC MARIN/AFP via Getty Images)

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On May 29, representatives from the Canadian Department of National Defence and the Ukrainian Ministry of Defence signed a drone production agreement. The statement, issued by the Canadian government, announced that the agreement with Ukraine would combine the expertise of Canadian and Ukrainian companies to “manufacture Ukrainian drone systems in Canada for the Armed Forces of Ukraine.” The statement added that defense partnerships and defense production with Ukraine will create “opportunities for Canada by expanding domestic manufacturing capacity for critical technologies.” In return, the document stated that Canada is “helping accelerate the delivery of equipment urgently needed by the Armed Forces of Ukraine.”

The drone agreement between Canada and Ukraine is the latest defense diplomacy deal the Ukrainian government has made this year. In April, following attacks launched by Iran in March on U.S. bases and countries across the Middle East, Ukraine sent drone experts to Kuwait, Jordan, Saudi Arabia, Qatar, and the United Arab Emirates to help them defend against Iranian drones. The Ukrainians also signed military cooperation agreements with Saudi Arabia, Qatar, and the UAE. Following the diplomatic tour in the Middle East, the Ukrainians then signed defense agreements with Germany and Norway. Ukraine also negotiated the establishment of drone manufacturing facilities in the United Kingdom, Denmark, and Romania earlier this year.

Ukraine’s drone and defense agreements with various countries in Europe, the Middle East, and now Canada this year suggest that Ukrainians are establishing themselves as serious leaders in the drone and defense manufacturing industries. When Russia’s full-scale invasion of Ukraine began in February 2022, some critics questioned how Ukraine would contribute to Europe’s defense industry.

Today, elected officials, policymakers, and defense industries around the world are requesting that Ukraine share its drone technology. This is because Ukraine’s drones are constantly being used to fight against Russia’s ongoing invasion. Ukrainian battle-tested drones have been used against Russian and Iranian Shahed drones, and they have targeted Russian defense equipment and Russian forces. Ukraine’s unmanned aerial systems have also been used to strike Russian ammunition depots, defense equipment, weapons factories, and energy facilities deep within Russian territory.

“International buyers are not only buying Ukrainian drones. They are buying combat-proven innovation,” Dr. Oleksandr Romanko, an Adjunct Professor at the University of Toronto and American University Kyiv, as well as a Senior Policy Advisor at Dignitas Fund Ukraine, told me in an interview. “International buyers are buying systems that have been tested against electronic warfare, air defenses, artillery, armor, logistics hubs, ships, and long-range targets. That battlefield validation is extremely difficult to replicate in peacetime procurement.”

Ukrainian drones are also cost-effective, making them desirable worldwide. According to a report published by Just Security on June 1, a Ukrainian-made first-person-view drone costs between $300 and $400, while a Ukrainian Sting interceptor drone costs around $2,500. By comparison, a U.S.-made Patriot interceptor costs more than $3 million, and Russian Shahed-style drones cost $50,000. Despite the exponential difference in cost, Ukrainian drones have been used to hunt enemy infantry, target Russian armored vehicles, and strike other Russian targets.

Additionally, throughout Russia’s full-scale invasion, Ukraine’s defense industry has been forced to adapt. When the war began, the Ukrainians constructed drones and other equipment so that they could be used to protect Ukrainian civilians from Russian missile strikes. The BBC reported that civilians were building FPV drones in their apartments, garages, and stores as they looked to provide assistance to the Ukrainian Armed Forces.

Over time, the Ukrainians refined their drone technology and equipment, and drone manufacturing plants were established. Enhanced drone production also meant that Ukrainian drones were fine-tuned and improved, where they were used to conduct strikes against Russian targets. AP News has reported that drones have helped save Ukrainian lives without putting Ukrainian soldiers and civilians in harm’s way.

Now, having witnessed the success of Ukrainian drones in the fight against Russia, and having secured drone and defense deals with countries in Europe and the Middle East, as well as Canada, the United States and Ukraine have drafted a memorandum outlining a potential drone deal. But a broader framework agreement has yet to be signed. During an interview with CBS News on May 31, Ukrainian President Volodymyr Zelenskyy shared that Ukraine has agreed to U.S. testing terms for its air, land, and sea drone systems. The Ukrainian president noted, however, that a final agreement has not been reached. Despite the uncertain timeline of the drone agreement, a potential finalized deal would be beneficial for both countries.

“For Ukraine, it would bring significant foreign capital investment, technology transfer opportunities, integration with the U.S. defense infrastructure, and expanded cooperation with American NGOs, private firms, and educational institutions,” Yurij Wowczuk, the Director of the Vovk Foundation, told me in an interview. “As for the United States, there are similar benefits, but perhaps the largest would be access to battle-tested equipment and associated performance data, access to Ukrainian engineering technical capability, improved relations as Allies, and the most efficient means to close the technology gap that currently exists in the U.S. defense technology sector.”

It is unclear when a decision will be made about the potential U.S.-Ukraine drone deal, nor is it certain if an agreement will be finalized. Nonetheless, the fact that the U.S. Department of Defense is turning to Ukraine for advice on drone technology and defense suggests that Ukraine has made its mark as a leader in the drone industry. After securing a defense deal with the Canadians last month, Ukraine will hope to achieve another drone-diplomacy victory in North America, this time with the United States.