Головні звуки українського ІТ. Вгадаєш всі? 👉

One step towards the “new nineties” in the defense industry: why the Vyriy Industries case could become a point of no return for Ukrainian DefenseTech

The searches at the drone manufacturer Vyriy Industries are not just another procedural action. This is the moment when the tension between the needs of the front and the methods of the Ukrainian law enforcement system has reached a critical point. The manufacturer, whose products have become synonymous with efficiency and low prices, has found itself under the sights of the State Bureau of Investigation. The community sees this as a dangerous signal: times of «turbulence» are coming for the Ukrainian defense industry, where engineering talent is giving way to a bureaucratic «stick» system.

Leave a comment
One step towards the “new nineties” in the defense industry: why the Vyriy Industries case could become a point of no return for Ukrainian DefenseTech

The searches at the drone manufacturer Vyriy Industries are not just another procedural action. This is the moment when the tension between the needs of the front and the methods of the Ukrainian law enforcement system has reached a critical point. The manufacturer, whose products have become synonymous with efficiency and low prices, has found itself under the sights of the State Bureau of Investigation. The community sees this as a dangerous signal: times of «turbulence» are coming for the Ukrainian defense industry, where engineering talent is giving way to a bureaucratic «stick» system.

«The Vyriy Case»: What happened?

On July 7, the State Bureau of Investigation came to search the home of Oleksiy Babenko, co-owner of Vyriy, and the company’s production sites. The official version is suspicion of overpricing the cost of drones in 2025. However, the sheer scale of the actions (searches at 40+ locations) raises questions among the professional community about the proportionality of such measures.

Babenko himself considers several versions of the current situation: from «competitors under sanctions» (they were referring to the entourage of Roman Kravets (the former owner of the Telegram channel «Joker»), or — the main working version — «Someone screwed up.» That is, some official or security officer tried to advance their petty interests, «run into» a business or move someone, but simply overdid it and overdid it.

Market Voices: Why does this feel like pressure?

Military units that destroy the enemy every day with Vyriy equipment are reacting most sharply. They see this not as a fight against corruption, but as a threat to their combat capability.

The Black Raven Battalion (93rd Special Brigade) does not believe in violations by the manufacturer. «For us, Vyriy is a secret weapon, a super-powerful magic wand. We tested their first aircraft when no one knew about them. If they are blocked, we will lose not just a supplier — we will lose the experience gained over the years of interaction and technical support that no „paper“ manufacturer with a high price tag will provide. We will have to look for alternatives, which often cost 3-5 times more and require months of refinement. Is the state ready to compensate for these costs with the blood of our pilots, who will be left without equipment at a critical moment?», — the sub-division’s comment says.

SIGNUM, in turn, notes: «About 80% of our drones are from this manufacturer. Even if there were individual inaccuracies, the company always promptly replaced everything. The irony is that there are drones on the market that are 3–5 times more expensive, but for some reason there are no questions about them.»

Advisor to the Minister of Defense and military signalman Serhiy Flesh noted that Vyriy once knocked down all the purchase prices for drones, showing how much they actually cost. «I remember that many people didn’t like it then. If there are questions about financial violations, they should be checked, that’s normal. But this should not affect defense capabilities. This is exactly what the enemy wants,» he noted.

The president of the Kyiv Aviation Institute (KAI), Ksenia Semenova, compares this to absurd cases from her experience at the university: «The police calculate the cost of a bench as the sum of boards and screws, and make the purchase at an ‘inflated price’. It seems that they calculate the cost of drones in the same way. It’s moronic, but it’s an effective tool of pressure.»

According to DefTech market experts, the situation with the accusations is absurd.

«When society first forms an image of the „guilty“ and only then understands the circumstances, this is a media campaign, not justice,» noted Yaroslav Petrushka, Chief Security Officer.

Yaroslav Azhnyuk, founder of Deftech companies The Fourth Law and Odd Systems, notes that for the first time since the times of Kievan Rus, Ukraine may be the world’s No. 1 in this industry. «But so far, few people realize this. If we don’t stop this now, we will lose not only justice, but also the war,» he predicts.

Military expert Anatoliy Khrapchinsky briefly summarizes the paradox: «We are calling on the world to invest in Ukrainian defense, but at the same time we are creating internal risks for our own technology companies.»

Babenko’s company has repeatedly explained why their drones are cheaper than others, says entrepreneur Igor Raikov. «Last summer, Vyriy appeared on BraveMarket with an offer of fiber-optic drones. A 10-13-inch daytime drone with a 20-kilometer coil cost competitors UAH 35,000-45,000, while Vyriy’s cost UAH 25,000. A nighttime (thermal imaging) drone with the same characteristics costs competitors UAH 85,000-90,000, while Vyriy’s cost UAH 50,000. When asked why the price is lower than all the others, the manufacturer always answered — we know how to do it cheaper. Analogues of the enemy’s „Lightning“, the first effective and inexpensive reconnaissance aircraft, and the first real analogue of the Mavic — „Slavik“ were developed using the same logic,» he says.

Political puzzle, mistake or revenge?

Producers and media experts point to «beautiful coincidences.» Oleksiy Babenko is a co-owner of the publication «Babel», which actively criticizes the actions of the authorities and the leadership of the Armed Forces of Ukraine.

Ksenia Semenova sees the situation as a nightmare, which she calls a systemic disease. «It looks like the new nineties. Law enforcement agencies do not seem to really understand what exactly they are supposed to protect, but definitely not the law. Strategically, this savagery is costing us a lot. We already have paralysis in decision-making in the state sector, because officials are afraid to sign. Now they are trying to transfer the same paralysis to the defense industry. If any effective manufacturer can become a victim of a „nightmare“ due to some dubious calculations of the cost of boards and screws, then why invest in Ukraine at all?» she noted.

Anastasia Mishkina, the head of Ukraine’s technological forces, also emphasizes proportionality. «This is a signal to the entire industry. How can we then call on international investors to localize production in Ukraine when any business can be paralyzed in one day?» she says.

Mustafa Nayem, a lawyer with professional experience in the defense industry, emphasizes the importance of the rules of the game: «The state’s actions must be conducted in a way that does not put the fulfillment of defense orders at risk. If the state comes to a manufacturer working on the front line, it must clearly explain the reasons, not paralyze production, and not create the impression that forceful pressure is a tool to fight the media or competitors. This is a signal to all manufacturers: if you are inconvenient, you are in danger.»

And the economist-futurist Andriy Dligach suggests looking at the situation through the prism of a systemic error: «Today, the SBR exists in a superposition of two states: „law enforcement officer“ and „tool“. The collapse of this wave function is not in the direction of justice, but in the direction of fulfilling orders. The dragon here is not Sukhachev or another specific person — it is the configuration of the system: uncontrolled subordination, the lack of independent selection of leaders, and the fusion of the body with those whom it is supposed to check. We need an anti-draconian strategy: creating conditions under which no body will be able to concentrate power without public accountability. The question is not only whether there is political will — the question is in our ability to demand systemic transformations, and not just „chop off the heads“ of individual officials.»

HR at Deftech Slava Pavlyuk, in turn, agrees with the version about the «custom» nature: «As soon as the founder of Vyriy bought out 75% of Babel’s shares and the publication published an investigation about Skely, the attack began through Telegram spam. This is a very beautiful coincidence.»

According to Igor Raikov, the issue of Vyriy is a matter of national defense, so the businessman is confident that it will be resolved quickly. «The Minister of Defense, the Office of the President will get involved and this attack will end as quickly as it began. But I don’t understand how much longer in a country that is fighting for its future, bleeding, can such an institution as the State Bureau of Investigation exist???,» Raikov asks rhetorically.

In general, if the situation drags on, Ukraine may lose not only its investment attractiveness in the eyes of foreign businesses, but also its technological advantage. After all, it will be difficult for the flagship drone business to work under pressure. Moreover, every day spent on interrogations and unblocking accounts is a day during which new versions of drones are not developed.

There are still a lot of unknowns in the drone equation. The official judicial legalization of the searches, the status of the case (whether formal suspicion will arise and who exactly), and the explanation for the choice of the format of actions without prior approval for the company performing defense contracts are what will determine whether the case will be closed with a review of financial irregularities or become an example of disproportionate pressure on the defense manufacturer.

The main working version is “Someone screwed up.” Vyriy founder Oleksiy Babenko told why the company was searched and how he was almost killed by an Iskander
The main working version is «Someone screwed up.» Vyriy founder Oleksiy Babenko told why the company was searched and how he was almost killed by an Iskander
On the topic
The main working version is «Someone screwed up.» Vyriy founder Oleksiy Babenko told why the company was searched and how he was almost killed by an Iskander
The State Bureau of Investigation announced an investigation into the purchase of drones worth almost UAH 7 billion. Law enforcement officers conducted searches at VYRIY Industries the day before
The State Bureau of Investigation announced an investigation into the purchase of drones worth almost UAH 7 billion. Law enforcement officers conducted searches at VYRIY Industries the day before
On the topic
The State Bureau of Investigation announced an investigation into the purchase of drones worth almost UAH 7 billion. Law enforcement officers conducted searches at VYRIY Industries the day before
Read the country's main IT news in our Telegram
Read the country’s main IT news in our Telegram
On the topic
Read the country’s main IT news in our Telegram

Have important news to share? Message our Telegram bot

Key events and useful links in our Telegram channel

Discussion
No comments yet.