The Netherlands has announced a 248-million-euro ($293-million) investment in joint drone production with Ukraine.
Production will be carried out in both Ukraine and the Netherlands, Defense Minister Dilan Yesilgoz-Zegerius said in Berlin following a Ukraine Defence Contact Group meeting.
“Drones play a crucial role on the modern battlefield. Ukrainians deploy them with incredible skill to repel the incessant Russian attacks. They are very successful in doing so,” she added.
“Thanks to the good cooperation with Ukraine, we learn directly from this. This also offers opportunities for our business community. The close cooperation with Ukraine thereby creates a direct win-win situation for both countries.”
No additional details were provided. However, the announcement follows an earlier Dutch commitment of 110 million euros ($127 million) to produce deep-strike drones with Ukraine jointly.
The investment falls under the Build with Ukraine initiative, which enables Ukrainian defense companies to set up production facilities in NATO countries, safeguarding operations from Russian attacks while strengthening integration with Western defense industries.
Dutch Bureaucracy Deters Investment
Despite the initiative, reports suggest that excessive bureaucracy is discouraging Ukrainian firms from expanding production in Europe, including in the Netherlands.
“The Netherlands does a lot for us, but waiting a year and a half before you are allowed to build something? We don’t have that time,” Dutch public broadcaster NOS quoted Fire Point Director and Chief Designer Denis Shtilerman as saying.
Fire Point is a newly established Ukrainian defense company that produces strike drones and missiles, including its flagship F-5 Flamingo cruise missile.
Explaining the delays, Director at the Netherlands Defence and Security Industry Foundation, Hans Huigen, said that producing offensive weapons and ammunition requires a significantly more complex licensing process than manufacturing defensive equipment.
“And investors are often reluctant to put their money into that,” he said.
As a potential workaround, he noted that “the Netherlands can build complete drones and supply missile components, after which Ukraine assembles the weapon. And that is already happening.”
