US-German software company Auterion will send 33,000 AI-powered drone “strike kits” to Ukraine before the end of the year under a new Pentagon contract, the Financial Times reports.

The announcement comes as peace talks remain stalled and Russia steps up its aerial campaign, modernizing its Shahed drones to cause as much damage as possible and scaling up their production. Ukraine has been scrambling to find an answer as these massed swarms increasingly breach air defences.

Auterion’s Chief executive Lorenz Meier said the new commitment was “10 times in scale” compared to previous deliveries:

“So we’ve shipped thousands and we’re now shipping tens of thousands,” Meier told the FT, describing the expansion as “unprecedented.”

How the Skynode “strike kits” work

Auterion’s Skynode miniature computers — which come with a camera and radio — can transform manually controlled drones into “AI-powered weapons systems” that cannot be jammed.
These systems can track a moving target from as far as 1km, according to Meier.

Part of Pentagon security assistance

The new $50 million contract with the Pentagon is part of US security assistance to Ukraine, Meier said.
It is not part of a separate “mega-deal” that Ukrainian President Volodymyr Zelenskyy said he is discussing with US President Donald Trump.

Meier highlighted Auterion’s co-operation with Ukrainian drone production:

“It’s basically acknowledging that the battle-hardening that has happened in Ukraine of drone products is relevant. That it’s a way to support Ukraine, but it’s also technology that … NATO countries want to get their hands on.”

Escalating Russian drone strikes

Russia’s air campaign has intensified in recent weeks, with Ukrainian officials reporting that swarm attacks now breach defenses more often. Strikes are hitting targets at roughly three times the usual rate.

Zelenskyy said that Ukrainian companies producing interceptor drones are struggling to expand production:

“So far, they have only manufactured individual units, and they lack the money for this,” adding that the total cost of scaling up domestic drone production stands at $6 billion.

Future of AI-driven warfare

Auterion, which has offices in Virginia and Munich, sees Ukraine as a testing ground for next-generation drone technology.

“What we are providing is leapfrogging what’s on the battlefield right now, which is to go to AI-based targeting and swarming,” Meier said, adding that humans would always select the targets.

Ukraine receives Patriot air defense systems, and it’s just the beginning. The US and its allies have provided the systems under a new scheme in which European nations foot the bill for American weapons supplied to Kyiv, The Washington Post reports. 

Two more is on the way

Germany has already delivered three Patriots. One more is under discussion with the US, while Berlin has pledged to help provide a total of five.

Defense Minister Boris Pistorius has confirmed this during a meeting of Ukraine’s allies, without going into further detail.

Ukraine aims for ten systems

Kyiv is aiming to receive ten Patriots under the new arrangement. Some batteries could even come from outside NATO. For instance, Switzerland has agreed to redirect five systems it had previously ordered to Ukraine, and will receive its own later.

Under the new scheme, Ukraine will also receive advanced radars, electronic warfare systems, drone interceptors, and artillery platforms, according to two informed officials.

Long-range missiles? Germany says no, the US still weighing options

Meanwhile, the issue of long-range weapons remains unresolved. Germany has already ruled out supplying Taurus cruise missiles. The US has not provided a clear signal. NATO officials are not ready to confirm that such transfers will not happen in the future, despite US President Donald Trump’s refusal.

German Major General Christian Freuding urged Ukraine to develop more efficient air defense systems, warning that Russia aims to launch 2,000 drones simultaneously in future attacks.

So far, the largest single drone assault by Russia on Ukraine since the start of the full-scale invasion involved 728 Shahed-type and decoy drones, alongside 13 missiles, and occurred on 9 July.

Speaking on the Bundeswehr program “Nachgefragt,” General Freuding highlighted the economic disparity in current defense methods. The former chief military coordinator of German aid to Ukraine noted that using Patriot missiles costing over 5 million euros to intercept Shahed drones worth 30,000 to 50,000 euros represents an unsustainable approach.

“We must consider intelligent countermeasures,” Freuding stated, advocating for defensive systems priced between 2,000 and 4,000 euros per unit.

The general also suggested preemptive strikes targeting Russian aircraft, airfields, and military-industrial facilities as an alternative strategy. Ukraine has already demonstrated this approach works.

In response, Ukraine is rapidly accelerating the development and deployment of low-cost interceptor drones to counter increasingly frequent Russian drone attacks, especially the Iranian-designed Shahed kamikaze UAVs.

They’re capable of shooting down about 70% of incoming threats, nearly doubling the success rate of traditional mobile fire teams.

President Zelenskyy emphasized that while the technology is proven, Ukraine urgently needs international financial support to mass-produce and deploy these interceptors to defend against the escalating drone assaults.

In June, Ukraine received a significant $4 billion boost from the G7 summit to accelerate the mass production of these advanced drone interceptors. Four Ukrainian companies are engaged in developing these interceptors, two showing notable success, with large-scale production agreements secured with Germany and Canada. 

The top Ukrainian UAV commander Robert Brovdi (aka Madiar) stated earlier that the war with Russia will continue beyond 2025, as Russian forces still send more infantry than Ukraine can destroy, while Ukraine faces shortages in mobilization resources and numerical inferiority.

He emphasized that “everyone who wanted to fight is already fighting,” so Ukraine’s strategy is shifting towards replacing infantry with unmanned ground-based drones and constructing a massive, multi-layered “drone wall” to intercept incoming Russian attacks. His Drone Line project aims to create a 10-15 kilometer “kill zone” to prevent enemy advances and includes boosting domestic production of drone munitions.

Ukrainian factories building drones to down Russian aircraft are changing the face of modern air defense — one low-cost interceptor at a time. On 18 July, the New York Post published a reportage about its journalists visiting two drone production facilities in Kyiv. The publication got an inside look at how Ukraine is confronting drone warfare with ingenuity and affordability.

Kyiv engineers race to scale drone interceptors

The New York Post says Nomad Drones and a second, anonymous company are leading a new surge in Ukrainian factories building drones. These interceptors are crafted specifically to neutralize Russian-launched Shaheds, which cost around $50,000 apiece. Meanwhile, Ukraine’s new models are dramatically cheaper — priced between $3,000 and $7,000, depending on type and size.

Nomad Drones co-founder and CEO Andrii Fedorov explained the concept to the NYP.

“In Ukraine, there is a phrase people have been using — that ‘quantity’ becomes ‘quality,’” he said.

According to Fedorov, deploying a $1 million missile to destroy a $50,000 drone makes no economic sense.

“If you have 20 drones, then the capacity costs you, say, $40,000 to shoot it down.”

Cost-effective jamming-proof drones

Nomad’s aircraft are designed for cost-effective lethality. Equipped with fiber-optic cables, they avoid jamming and reach enemy drones undetected by radars. Each unit carries explosives and can be detonated remotely on approach. That ability is critical against fast-moving targets like Shaheds, often launched in swarms across Ukrainian airspace.

A second firm — unnamed in the report due to repeated Russian strikes on its facility — builds a meter-long missile-style interceptors. That company continues operating despite multiple attacks.

“It’s all about cost-effectiveness,” an employee said. “Western technologies are so cool and modern — they are expensive at the same time.”

Built for war, priced for survival

The strategy centers on affordability, speed, and scalable output. Nomad Drones and others now produce tens of thousands of interceptors monthly. These low-cost systems are not meant to endure — they’re made to fly once, explode midair, and protect civilian lives.

Tis model contrasts sharply with existing Western air defense systems, which rely heavily on expensive precision strikes. With Russia launching over 700 drones in a single night last week, Ukrainian engineers have prioritized high-volume production as the only viable path forward.

Ukraine is deploying a new generation of air-defense drones—fast, lightweight, and highly maneuverable—designed specifically to intercept and destroy Russia’s Iranian-designed Shahed attack drones.

With peace negotiations stalled and Russian aerial attacks intensifying, Kyiv is turning to homegrown technology to fill a critical defense gap. Massive waves of Shahed drones have made traditional missile systems economically unsustainable, prompting the rapid deployment of tens of thousands of compact, low-cost interceptors.

What these interceptor drones are

According to Forbes tech correspondent David Hambling, Ukraine’s interceptors mark a technical leap in drone warfare, prioritizing speed, scalability, and affordability:

• Lightweight and aerodynamic: Designs include bullet-shaped quadcopters (like Wild Hornets’ Sting) and delta-wing drones, built for high-speed, high-altitude engagement.
• Vertical engagement capability: These drones can climb to intercept Shaheds flying at over 10,000 feet (≈3 kilometers)—well above the reach of ground-based machine guns.
• Radar and visual guidance: Integrated into a nationwide sensor and command system, they are coordinated to track and strike slow-moving aerial threats.
• Low cost: Priced at just $1,000 to $5,000 per unit, they’re dramatically cheaper than the $3.3 million US Patriot missiles used to counter other threats.

What Russia is saying

Even figures within Russia’s defense-industrial elite have acknowledged the growing impact of Ukraine’s interceptor efforts. Alexey Rogozin—former CEO of Ilyushin and a senior figure in Russia’s military aviation sector—wrote on Telegram that Ukraine had effectively constructed a local anti-drone network over Kyiv:

“In fact, we are talking about an urban anti-drone dome built on the mass use of small-sized interceptors,” he said, referring to the Clear Sky initiative.

Rogozin claimed that more than 500 Shaheds had been intercepted under this system. While he maintained that large drone waves could still overwhelm defenses, he conceded that the cost dynamic has shifted:

“Now it is more expensive to attack than to defend.”

However, the system is not foolproof. Despite the deployment of interceptors, Kyiv continues to experience Shahed strikes, and explosions remain a frequent occurrence. Interception rates have reportedly improved, but with systems still scaling up, real-world effectiveness remains incomplete.

Why Ukraine is using them

Russia’s Shahed drones are slow, cheap, and launched in overwhelming numbers. In June alone, Russia launched over 5,000 Shahed-type drones, including as many as 728 in a single night—far more than traditional systems like Patriots can handle.

Ukraine’s interceptors offer a cost-effective, scalable response to this flood of threats. Small, fast, and increasingly numerous, they are designed to match Russia’s production tempo.

President Volodymyr Zelenskyy recently praised the system, stating that “hundreds of Russian-Iranian Shahed drones have been shot down this week” alone. Officials say interception rates, which had dropped due to higher-altitude attacks, are now back above 86%.

Moment a Russian Shahed drone is shot down over Odesa on Sunday morning. Some reports suggest it was intercepted by another drone. pic.twitter.com/qF5dYySMVC

— WarTranslated (@wartranslated) July 11, 2025

How many are coming

According to Arsen Zhumadilov, head of Ukraine’s Defense Procurement Agency, the country has already signed contracts for tens of thousands of interceptor drones.

“This is what we have already contracted and will continue to contract,” Zhumadilov said in a 14 July interview with Babel. “We will definitely contract everything that the state budget can afford.”

He added that if domestic production capacity exceeds state funding, allied nations may help finance additional units to expand coverage.

Strategic impact

Ukraine’s interceptor drone program is emerging as a flexible, affordable answer to Russia’s drone warfare campaign—and potentially a model for other nations facing similar threats.

“Ukraine is massively scaling up its production of low-cost interceptor drones to stop Russia’s growing barrages of Shahed attack drones,” wrote David Hambling.

At the recent G7 summit, Zelenskyy emphasized that this technology could serve as a global solution for defending against mass drone attacks—an increasingly relevant challenge in modern warfare.

Commenting on Russia’s 12 July drone attack, ISW said it continues to assess that Russia’s ongoing large-scale air assaults are intended to degrade Ukrainian and Western morale and highlight Ukraine’s need for continued Western support for its interceptor drone program and for Western-supplied air defense systems, especially US Patriots.

ISW: Russia targets morale in Ukraine and the West

According to the Institute for the Study of War (ISW), the Kremlin is using mass air attacks not solely to cause damage, but to psychologically exhaust Ukraine and its allies. ISW emphasized that this psychological dimension is now central to Russia’s strategy, and Ukraine’s continued ability to protect its skies depends heavily on consistent Western aid.

“ISW continues to assess that Russia’s ongoing large-scale strikes are intended to degrade Ukrainian and Western morale and underscore Ukraine’s need for continued Western support for Ukraine’s interceptor drone program and for the continued supply of Western air defense systems, especially US-provided Patriot systems,” ISW wrote.

ISW has already noted previously that “The continued increase in the size of strike packages is likely intended to support Russian efforts to degrade Ukrainian morale in the face of constant Russian aggression.”

Russia launched third massive drone-missile strike this month

As Euromaidan Press reported yesterday, Russia launched a major combined drone and missile strike overnight on 11–12 July — its third large-scale air attack this month. The Ukrainian Air Force stated that Russia launched 339 Iranian-designed Shahed-type drones and 258 decoy UAVs, totaling 597 drones, from several locations within Russia. Russia also fired 26 Kh-101 cruise missiles from airspace over Saratov Oblast.

Ukraine’s air defenders downed 319 Shaheds and 25 missiles, while another 258 drones were either suppressed or lost via electronic warfare. Despite successful interception, critical infrastructure and civilian facilities were damaged in Chernivtsi, Cherkasy, Kharkiv, Kyiv, Lviv, Sumy, and Volyn oblasts.

Mykola Kalashnyk, head of the Kyiv Oblast Military Administration, said Ukraine’s Clean Sky interceptor drone program downed over 50 drones during the overnight strike.

Germany is ready to buy US Patriots for Ukraine if Washington gives the green light, Chancellor Friedrich Merz said on 10 July. The statement comes as Ukraine’s air defense capacity weakens under escalating Russian air strikes and limited US support.

Merz says Berlin will fund more Patriots for Ukraine

Germany is ready to buy US Patriots and deliver them to Ukraine, Chancellor Friedrich Merz confirmed during a press briefing in Rome, Reuters reported.

“We are also prepared to purchase additional Patriot systems from the US to make them available to Ukraine,” Merz stated.

He said he raised the matter directly with US President Donald Trump last week. According to Merz, the United States holds sufficient reserves of the systems.

“The Americans need some of them themselves, but they also have a lot of them,” he said, noting that a delivery decision had not yet been finalized.

The Patriot system—short for Phased Array Tracking Radar for Intercept on Target—is among the most advanced US air defense platforms. Built by Raytheon Technologies, the theater-wide surface-to-air missile system is designed to counter aircraft, ballistic missiles, and drones.

Ukraine uses its Patriot systems to intercept Russia’s ballistic missiles, the fastest munitions in the Russian arsenal.

Trump earlier offered 10 Patriot missiles. Those are enough for one battle at most 

On 8 July, Axios reported that Trump promised to immediately send 10 Patriot missiles to Ukraine. The Wall Street Journal added that Trump is considering delivering an entire Patriot system. 

Ukraine’s military, however, voiced skepticism. Speaking to The Times on 9 July, an unnamed senior Ukrainian Air Force officer—Ukraine’s air defenses report to AF—noted:

“If they actually send us ten [missiles], it will be nothing more than a bad joke,” he said, according to NV. “That’s not enough for even one battle.”

Axios also reported that Trump is pressuring Germany to transfer one of its Patriot batteries to Ukraine, adding further political complexity to Merz’s initiative.

Earlier statements from German officials noted “intensive talks” with the United States regarding Patriot system transfers.