Ukraine and Canada to establish a joint venture for drone production
In late May 2026, the Ukrainian Ministry of Defense announced the creation of a joint venture with the Canadian company Sentinel to manufacture drones. This project, within the framework of the Build with Ukraine program, will significantly enhance the country’s defense capabilities.
The collaboration between the Ukrainian company Airlogix and the Canadian Sentinel began with the Build with Ukraine initiative, aimed at supporting the growth of Ukrainian technologies on an international scale. According to Airlogix CMO Viktor Lokotkov, the partnership aims to strengthen Ukraine’s front with state-of-the-art unmanned aerial vehicles.
The new joint venture in Canada will be involved in almost the full production cycle of drones, except for catapults, which will be manufactured in Ukraine. The produced goods will be delivered to the Ukrainian Defense Forces. The transfer of Ukrainian technologies to the Canadian partner will be carried out under a license, which does not imply a full transfer of rights but merely a manufacturing permission.
In the initial stages, production capacities will match the contract volumes with the governments of Canada and Ukraine, but there are plans to scale them up. The production launch is funded by the Canadian government; however, the project’s budget is not disclosed for confidentiality reasons.
The prospects for both sides are mutually beneficial: Canada gains industrial development and economic support, while Ukraine acquires necessary defense means in secure conditions. Airlogix, which is already collaborating with the German company Auterion, plans to expand partnerships with other countries.
| Country | Partner | Area of Cooperation |
|---|---|---|
| Canada | Sentinel | Drone Production |
| Germany | Auterion | Joint Venture |
| Others (Planned) | Not Disclosed | Joint Ventures |
