Ukrainian defence technology company Frontline has signed a strategic agreement with German-Ukrainian drone manufacturer Quantum Systems.

The deal, announced on 16 July by Deputy Prime Minister and Minister of Digital Transformation Mykhailo Fedorov, aims to expand domestic production and integrate Ukrainian military technology into the wider European defence industry.

The partnership builds on a memorandum of understanding signed in April 2025. Under the agreement, Quantum Systems has acquired a 10 per cent stake in Frontline, with the option to increase its shareholding to 25 per cent within 12 months. In parallel, Frontline has begun incorporating European-manufactured components into its robotic platforms, which are already deployed on the battlefield.

Fedorov described the agreement as part of a broader strategy to attract investment into Ukraine’s defence tech sector and deepen collaboration with European partners. Both companies are participants in Brave1, the Ukrainian government’s flagship defence technology initiative. Their cooperation is expected to result in the scaling up of production facilities in Ukraine and closer integration with European defence supply chains.

Quantum Systems is recognised for its advanced drones equipped with artificial intelligence and real-time data analysis. Frontline designs and manufactures a range of systems including unmanned aerial vehicles (UAVs), ground robots, remote-controlled turrets, and supporting software. Its products include the “Linza” drone bomber, the “Zoom” reconnaissance UAV, and the “Burya” turret. All are NATO-coded and currently in service with 41 Ukrainian military units.

Fedorov has repeatedly emphasised the strategic importance of unmanned systems in Ukraine’s defence policy. Speaking to RBC-Ukraine on 14 July, he said that “the future definitely belongs to unmanned aircraft” and outlined the government’s plans to enable remote operation of drones from civilian urban areas across Ukraine. “The goal is for an operator to control a battlefield drone from any city in the country,” he said. “Beyond that, full drone autonomy. But that’s probably a matter of years.”

The partnership between Frontline and Quantum Systems also coincides with the launch of BraveTech EU, a new joint initiative between Ukraine and the European Union announced at the Ukraine Recovery Conference in Rome on 11 July. This programme will see both sides invest €50 million to support defence technology development, including hackathons, R&D grants, and battlefield testing for Ukrainian and European companies. The first phase is due to begin later this year.

BraveTech EU is an extension of Ukraine’s domestic Brave1 platform, combining input from developers, start-ups, the armed forces and foreign investors to develop technologies relevant to modern warfare. According to Fedorov, future projects under this initiative will likely include “highly autonomous products, anti-guided aerial bombs, and anti-drone systems using fibre optics.”

In his interview, Fedorov stated that the evolution of FPV drones and autonomous copters will continue despite increasing electronic warfare threats. He predicted the development of drone swarms operating as a shared network, with the ability to identify and strike targets autonomously, navigate in the absence of communication links, and resist jamming.

The drive toward remote and autonomous drone operations is also rooted in battlefield necessity. Fedorov noted that Russian forces have formed specialised military units, such as the Rubicon group, specifically tasked with locating and eliminating Ukrainian drone operators. “We need to get UAV operators off the battlefield,” he said. “Our mission is to enable remote operation as much as possible and eventually implement autonomy.”

He also acknowledged that Russia holds an advantage in conventional air defence capabilities. “Russia doesn’t have that problem; they have plenty of missiles and air defence systems. Our air defences don’t reach their helicopters, but theirs do reach ours,” he said.

To meet these challenges, the Ukrainian government is preparing a dedicated grant programme to accelerate the development of remote drone operations and counter-drone systems. Fedorov stated that interceptor drones currently remain the most effective defence against Russian UAVs, particularly Iranian-designed Shahed drones.

The Frontline–Quantum Systems agreement is indicative of Ukraine’s growing role as a centre for battlefield-tested technological innovation. The rapid iteration cycle enabled by direct military feedback has made Ukrainian firms attractive partners for European defence companies seeking to deploy and refine products under real combat conditions.

By integrating NATO standards, incorporating European components, and collaborating through initiatives like Brave1 and BraveTech EU, Ukrainian defence manufacturers are positioning themselves not only as critical actors in the country’s war effort but as contributors to the European Union’s long-term strategic autonomy in defence technology.

A Drone Surge Could Tilt the Balance in Ukraine’s War Against Russia