Even small EU nations go big on arms production, sending drones to the Ukrainian front and beyond

NICOSIA, Cyprus (AP) — The terrifying propeller drone heard on battlefields in Ukraine is likely coming from drones made in Cyprus, a country with a population of just over a million people on the edge of southeastern Europe.

Manufacturer Swarmly said more than 200 H-10 Poseidon drones help Ukrainian artillery batteries pinpoint enemy targets on the ground in various weather conditions, with more than 100,000 flight hours over the past three years.

Its 5,000-square-meter (54,000-square-foot) factory, where the sound of grinders processing composite plastics echoes off the walls, has become a major source of driverless vehicles destined for countries including Indonesia, Benin, Nigeria, India and Saudi Arabia, according to company officials. A large part of the factory is reserved for the manufacture of unmanned aerial vehicles. But hidden away in a secure storage area is a series of Swarmly super-fast maritime drones equipped with high-definition cameras and .50-caliber machine guns.

Russia’s invasion of Ukraine has prompted even the smallest EU member state to develop its own high-tech defense industry, just as necessity has turned Kyiv into a world leader in cutting-edge drone technology. Many EU countries have partnered with Kyiv to develop the technology, and Ukraine’s front lines are often their proving grounds.

Like Cyprus, the Baltic states and Denmark have accelerated the development of their own drone and counter-drone technology. In Greece, drones are part of a 25 billion euro ($29 billion) overhaul of its armed forces.

Federico Borsari, an expert at the Washington-based European Center for Policy Analysis, said: “The example of Swarmy and other important companies based in small EU countries is evidence of the European private sector’s serious efforts to innovate and build capabilities for large-scale production of defense products, including unmanned systems.”

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force multiplier

Drones are reshaping warfare, giving countries with weaker military capabilities some leverage against superior adversaries. Borsari said drones would not completely replace large weapons such as tanks, artillery and fighter jets. But they offer flexibility and cost-effectiveness, making them powerful force multipliers.

Take Swarmly’s explosives-laden, satellite-guided Hydra maritime drone, for example. Company director Gary Rafalovsky said each submarine costs 80,000 euros ($94,500), meaning it could be cost-effective to deploy a fleet of submarines to take out a billion-euro warship.

Fabian Hinz, a missile technology and drone researcher at the European Institute for International Strategic Studies, said the naval weapon could destroy a larger warship, as has been demonstrated by attacks by Houthi rebels in Yemen.

He added that barriers to entry for undercapitalized companies are low because drones are often designed and assembled from components that are cheap and readily available in global markets.

“What that means, of course, is that basically you don’t need to make the massive industrial investments that other military capabilities require first. You don’t need to have decades of experience in some of the materials science or something like that,” Hintz said.

Enter the game

In Denmark, two companies specializing in counter-drone equipment reported a surge in new customers, with some of the equipment set to be shipped to Ukraine to help disrupt Russian technology on the battlefield. Ukraine said in September it was working with Danish companies to produce missile and drone parts at a factory in Denmark.

In the Baltic country of Lithuania, scientists and business partners have joined forces under the name VILNIUS TECH to develop drones, autonomous mine detection and other military technology. State-run ammunition factory Giraite said its production capacity has increased by 50% since 2022.

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Greece demonstrated its home-made drone and counter-drone technology for the first time in a full-scale tactical exercise in November, with NATO urging European defense agencies to step up the pace.

“We need capabilities, equipment, real firepower and state-of-the-art technology,” NATO Secretary-General Mark Rutte warned during a visit to Romania earlier this month. “Come forward with your ideas, test your ingenuity, and use NATO as your testbed.”

Borsari warned that despite the accelerated pace of drone development, the advantages of drones are often affected by many variables, such as the harsh conditions in which they sometimes fly, the training and skill levels of their operators, and the depth of logistical support that maintains their functionality.

Europe goes into defensive mode

Russia’s war in Ukraine and mixed messages from the Trump administration have strained relations with NATO allies, forcing European leaders to consider the need to be more self-reliant in defense. The EU has therefore provided billions of euros to encourage investment and enhance its collective deterrence capabilities.

This is a boost for countries such as Cyprus, which took over the six-month rotating EU presidency on January 1. Last week, the EU’s executive arm approved financial aid for eight member states including Spain, Croatia, Portugal, Bulgaria, Belgium, Romania and Cyprus.

Cyprus will receive final approval from EU leaders to provide about 1.2 billion euros ($1.4 billion) in low-cost long-term loans under the EU’s 150 billion euros ($177 billion) joint procurement program called Security Action for Europe (SAFE).

Panayiotis Hadjipavlis, director of the Cyprus Defense Ministry’s Armaments and Defense Capabilities Development Agency, said its nascent defense industry already consists of about 30 companies and research centers producing technology for the civilian and military sectors, including robotics, communications networks, counter-drone systems, and even satellite communications and surveillance.

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“We have niche capabilities in high-tech products that have to be seriously considered,” Hadji Pavlis told The Associated Press in his office, where a helmet from his fighter pilot days hangs on a nearby coat rack.

He added that major defense industry players should take note.

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Associated Press writer Liudas Dapkus in Vilnius, Lithuania, contributed.

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