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US Defense Department Awards First Contract for Ukrainian Drone Production on American Soil

Peter Zeihan Podcast · The U.S. and Ukraine Make a Drone Deal || Peter Zeihan · July 10, 2026
US Defense Department Awards First Contract for Ukrainian Drone Production on American Soil
Peter Zeihan Podcast
Peter Zeihan Podcast
The U.S. and Ukraine Make a Drone Deal || Peter Zeihan
"We have our first contract granted by the Department of Defense to have a US manufacturer produce Ukrainian drones under license. There's not a lot of information out at this point. It's all super secret, but I'll share what I know and give you a couple of guesses based on what we know what that means."
The Department of Defense has granted its first contract for American production of Ukrainian military drones, marking a significant shift in U.S.-Ukraine defense cooperation. Ukrainian Defense Drones will manufacture the F10 quadcopter drone under license from Ukrainian company F Drones at a facility in Ohio, though construction won't be completed until December 2029. The deal comes despite reported tensions between President Trump and Ukrainian President Zelensky.

About this episode

Peter Zeihan reports from Colorado on a significant development in U.S.-Ukraine defense cooperation: the Department of Defense has awarded its first contract for American production of Ukrainian military drones. The deal involves U.S. company Ukrainian Defense Drones manufacturing the F10 quadcopter under license from Ukrainian drone manufacturer F Drones, one of Ukraine's leading drone developers whose F7 model was voted drone of the year in 2024. The F10 is a first-person view quadcopter with an estimated range of 25-40 kilometers and payload capacity of 3-4 kilograms, suitable for targeting personnel and light vehicles but not heavy armor. The drone uses 100% non-Chinese components. However, production timelines are extended: the Ohio facility designated for manufacturing hasn't begun construction and won't be completed until December 2029, with an initial order of only 2,000 units at approximately $650-700 each. Zeihan notes the contract is part of a broader U.S. program to deploy 200,000 drones by the end of 2027. He emphasizes that while this represents a breakthrough in Ukrainian defense technology transfer to the United States, European and Middle Eastern allies have moved faster on such partnerships. The analyst expresses concern that President Trump, who reportedly has personal animosity toward President Zelensky, may not be aware of the contract and could potentially cancel it upon discovery. Despite limitations, Zeihan views this as a crucial first step toward leveraging Ukraine's world-leading expertise in drone warfare technology and doctrine development.

Key takeaways

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