Interceptor drones: Ukraine’s best bet against Russian Shaheds

BLUF: To counter Shaheds, interceptor drones need a specific set of capabilities: They must fly at more than 200 km/h, have safeguards against jamming by friendly electronic warfare equipment, and work seamlessly with radars.

A key committee has given the green light to two bills for a new regulatory structure for defense producers, bringing the ‘Defence City’ concept closer to fruition. 

Ukrainian startups The Fourth Law, Tencore secured investments. DataDriven has a study on how drone makers will benefit from the lifting of export restrictions. 

And we’re bringing you a whole new section, the Russia Innovation Tracker, where we break down the latest tricks Russia is using on the battlefield.

THE BIG STORY: Eliminating the Shahed threat with advanced interceptor drones 

Russia has changed how it uses Shahed kamikaze drones against Ukraine. 

Instead of deploying 500 drones nationwide like they used to, Russian forces now target one or two cities at a time. They are also flying at altitudes above two km to stay out of reach of the machine guns used by Ukraine’s mobile fire groups to down incoming drones (read our report on how Russia modernized Shaheds elude Ukrainian defenses).

Interceptor drones cost a few thousand dollars each, much less than anti-aircraft missiles or fighter jets. They’ve also already been put to the test: Ukraine has been using interceptor FPV-drones against reconnaissance drones for almost a year. 

The government is now waking up to this reality after interceptor drones initially got all their start from private businesses and volunteers. 

What Ukraine’s new FPV interceptors can do

We talked to three developers and manufacturers of interceptor drones, and they laid out for us the minimum requirements for intercepting a Shahed: 

• A speed of over 200 km/h (a regular FPV flies at up to 120 km/h);

• The ability to climb to altitudes of up to 6 km;

• A terminal guidance system to reduce dependence on the operator;

• The design type can vary from multirotor to fixed-wing;

• The warhead should be between 600 and 1200 grams.

"The bigger the target, the bigger the warhead needed for more precise detonation. Because you can hit a wing, but it will only tear it off and not destroy the target itself," Olha Bihun, co-founder and CEO of Anvarix, a terminal guidance system developer, told Counteroffensive.Pro. 

Interceptor drones could destroy a Shahed with either a direct hit or with a special warhead that explodes near the target, creating a cloud of debris (Read our deep dive about Ukrainian anti-aircraft FPV drone concepts).

Wild Hornets, a Ukrainian drone manufacturer, is currently developing an interceptor drone called Sting that was designed to counter Shaheds. It’s controlled just like an FPV drone, with the operator typically wearing goggles. 

The company declined to comment on the Sting’s capabilities due to security concerns. The company recently tested another interceptor drone that can climb up to 11 km, but provided no additional details.

Why it’s so difficult to counter Shaheds

An Orlan or Zala, Russian reconnaissance drones, fly at speeds of up to 150 km/h, but a Shahed can fly at over 200 km/h, and sometimes up to 550-600 km/h with recent developments. 

An interceptor drone capable of downing a Shahed has to not only be fast, but also light enough to be highly maneuverable. It also has to stay in the air long enough for guidance to the target, and the operator must be able to adjust the route quickly to stay on the target. 

Operator experience is also critical. Training an operator takes about half a year, Taras Tymochko, a consultant at the Come Back Alive Foundation, told Counteroffensive.Pro. 

Training consists of three stages:

• Basic training takes one month.

• Mastering air target interception takes approximately one more month.

• Building expertise takes another 4–6 months.

Ukrainian drone operators will also constantly need to improve their skills and change tactics to keep up as Russian forces adapt, said Tymochko. 

Machine vision, the technology that lets an autonomous system see and interpret its surroundings, requires training to distinguish a Shahed from different angles. Fog or clouds also complicate this task. Machine vision must also be trained not to lose objects during turns or other maneuvers, said Bihun, the CEO of Anvarix. 

Shooting down a Shahed is multi-layered work. An interceptor drone can’t operate independently: Soldiers still need to detect the enemy drone, its location, and movement vector with a radar system.

Friendly electronic warfare also might pose problems. Ukrainian forces use electronic warfare to try and disrupt the satellite navigation on Shahed drones, but Russians are also launching other drones, including radio-controlled ones, to overwhelm air defense systems, said Mykhailo Zahorodniuk, CEO of Sky Defenders, which produces Shahed interceptors.

Theoretically, this problem could be solved by temporarily disabling Ukraine’s EW system or moving to another frequency during a Shahed attack, said one developer who worked on interceptor drones and requested anonymity. But with different units and different equipment, this is a very complex process that would require coordination between units.

One potential way to ensure smooth operation in an environment with friendly EW could be a fiber optic interceptor, Yevhen Sukhinin, CEO of Ptashka Drones, told Counteroffensive.Pro. 

The company produces fiber optic FPV drones and is currently working on such an interceptor. With fiber optics, all communication between the operator and the drone goes through the cable, making it resistant to EW (Read our previous publication about how fiber optic FPV drones work).

Why haven't Shahed interceptors been mass produced yet?

President Zelenskyy said last month that efforts were underway to ramp up production of interceptor drones, and just this week, the Defense Procurement Agency announced contracts for “tens of thousands” of them. 

But in many ways Ukraine is playing catch up because commanders in Air Forces resist innovations, said Serhii Sternenko, founder of the charity fund Sternenko’s Community.  There is uncertainty surrounding the future of possible orders and a fear of investments being lost if no contract is secured, said a manufacturer developing two interceptor drones. He asked for anonymity due to security reasons.

Local administrations have been taking action to rectify this situation, however. For example, the Kyiv City Military Administration has announced a ‘Clean Sky’ program, with $6.2 million going towards the creation of a system to intercept enemy drones.

Ukraine has already signed a contract with the American company Swift Beat, founded by Eric Schmidt. It includes coproduction of interceptor drones and deems their shipment to Ukraine a “priority.” 

The timely detection of Shaheds is another pressing issue that must be addressed for interceptor drones to be effective. Acoustic detection systems and radar stations are crucial to quickly spotting Shaheds, but they’re not exactly easy to come by: The average wait time for getting a radar station from a Ukrainian producer is now 13 months.  

Organizational hiccups or miscommunications can delay the response time of interceptor groups, leading to them deploying and reaching the required altitude only after the enemy drone has already passed, one anonymous developer noted.

Interceptor drones components, like high-speed engines that are not currently produced in Ukraine are also hard to come by. 

It's also challenging to buy high-speed propellers, due to rising demand. 

Similarly, camera matrixes for interceptors cost more than regular anti-aircraft FPV drones. 

This all results in a higher price tag for interceptors than for typical FPV drones. 

For example, Sky Defenders' ZigZag interceptor costs over $2,500, which is more expensive than other anti-aircraft FPV drones that cost around $1,000.

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BUSINESS LUNCH TOPICS: What our reporting shows!

1. ‘Defence City’ legislation one (big) step closer

The Verkhovna Rada Committee on Finance, Taxation, and Customs Policy has recommended the adoption of two draft laws, #13420 and #13421, which are part of an initiative to establish a separate regulatory structure for defense companies. Read our detailed coverage on the pros and cons of the initiative here.

The legislation aims to:

• Simplify export controls for dual-use and military technologies;

• Simplify customs procedures for defense companies that join Defence.City;

• Exempt companies in Defence.City from several taxes until 2036 (land tax, real estate tax, environmental tax, income tax on reinvestment);

• Set new rules on currency control by the National Bank of Ukraine for Defence.City companies;

• Support Defence.City companies in relocating production to safer parts of Ukraine;

• Protect data about defense industry manufacturers that would otherwise be available in public databases. 

“Currently, there is an imbalance: imports of components (particularly from China) are not subject to VAT, while Ukrainian production is. This creates unequal conditions… Concessions are not just an incentive, but a real necessity. And such steps should have been taken long ago,” MP Halyna Yanchenko, one of the initiators of the draft laws, told Counteroffensive.Pro. 

Defense manufacturers have also come out in support of the initiative. The National Association of Ukrainian Defense Industries (NAUDI) plans to share their feedback on how to best implement the measures laid out in the legislation to the draft laws’ authors, Serhii Vysotsky, deputy head of NAUDI, told Counteroffensive.Pro.

2. What drone makers will benefit from the lifting of export restrictions?

Ukrainian drone manufacturers can produce millions of units annually, but Ukraine lacks customers who can purchase them all. 

Allowing controlled weaponry export is a necessary step, according to a study by the DataDriven consulting agency (available only in Ukrainian).

The research indicates that opening exports would enable:

• The sale of surplus production abroad thanks to access to global markets.

• Accelerated technological development through competition with global companies.

• The possibility of new funding sources.

The main challenge for Ukrainian manufacturers will be:

• A shortage of qualified personnel in the Ukrainian market (read our article on how manufacturers are addressing this issue).

• Intense competition in the Western markets.

• Lack of stable investment in Ukrainian companies.

Ukrainian manufacturers’ dependence on Chinese components presents another issue. But this could prove to be an advantage if Ukrainian producers are spurred to localize the manufacture of drone parts that were previously supplied from China. For more, read our Deep Dive on Ukraine’s efforts to replace Chinese DJI ‘Mavic’ drones.

Read the full analysis in Ukrainian here. Counteroffensive.Pro served as an information partner in the DataDriven study.

3. Ukrainian ground drone maker secures more than $3 million in investment

MITS Capital, an American-Ukrainian venture firm, invested $3.7 million in Tencore, the Ukrainian company behind the battle-tested TerMIT vehicle. The funds were raised directly through Tencore’s Ukrainian legal entity in Diia.City, a special economic zone for IT companies and manufacturers. It’s the first time a U.S. investor has used that special framework to invest in a Ukrainian defense company. 

“The funds raised will go towards modernizing the TerMit [ground drone] and developing new products,” Maksym Vasylchenko, CEO of Tencore, told Counteroffensive.Pro.

MITS Capital made its first investment in Tencore during the MITS Accelerator program in 2024, Perry Boyle, CEO of MITS Capital, told Counteroffensive.Pro.

4. The Fourth Law secures a new investment round from angel investors

The Fourth Law, a Ukrainian autonomous drone company, secured a first round of investments from angel investors based in the EU, the U.S. and Canada. The company has not disclosed the exact amount of investment. 

“R&D is a key area for funding further product development, namely the transition to the next levels of autonomy: bombing, navigation, takeoff and landing, etc,” Yaroslav Azhnyuk, CEO and founder of The Fourth Law, told Counteroffensive.Pro.

The startup recently unveiled its flagship systems, the TFL-1 autonomy module that helps FPV-drones with terminal guidance. 

5. Russian innovation tracker: Using magnets, ropes to down Ukrainian drones

The Russian military has apparently started to use magnets on ropes to strike Ukrainian drones. At least that’s what a brief video circulated by Kremlin-friendly media suggests, showing what appears to be a Mavic drone knocked out of the sky with a rope. 

The concept is pretty straightforward: Russian drones fly over an incoming Ukrainian drone, drop a rope with a magnet attached, and throw the Ukrainian drone off course. 

The idea can be effective, according to Oleksandr Barabash, CTO at Falcons LLC, a drone developer. Anything that can interfere with drone engines or propellers can be useful for both sides, he said. 

At the same time, this method might not be so effective when it comes to non-Mavic style drones.

Aiming at faster drones in this manner would be difficult, and there’s nothing to suggest the rope maneuver is being used systematically. 

The Ukrainian military is also experimenting with mounting different equipment on drones to intercept enemy drones. Read our coverage on clever new ways to use shotguns, nets, and even a stick on an FPV drone.

Ukrainian orders/legislation we’re tracking: 

By: Oksana Zabolotna

Tax Code changes to support defense companies as part of Defence City

Draft Law №13420 dated 25.06.2025

Why it’s important: These amendments will enable the export of military technologies under martial law and provide tax benefits for weaponry producers. 

Such measures are expected to strengthen the defense tech industry by increasing enterprise revenues, encouraging investment in innovation, and promoting Ukrainian technologies abroad. 

Proposals:

• Until January 1, 2036, a special tax regime will apply to defense industry enterprises included in the List of the Ministry of Defense of Ukraine, otherwise referred to as ‘Defence City’;

• This includes exemption from the land tax, real estate tax, ecological tax and income tax (provided the income will be reinvested in production development or support for security forces);

• A company is eligible to join the List if at least 90% of its net income comes from defense-related activities, it has not violated the tax regime, and it is located in the territories designated by the Ministry of Defense;

• To remain a resident of Defence City, companies must ensure 90% of their income comes from defense-related activities each quarter, be registered in the designated regions, submit reports to the MoD on time, and pay a licensing fee for the export of military technologies;

• The licensing of military technology exports by defense enterprises is simplified — including the right to export military technologies for future production abroad by Ukrainian  foreign companies in partner countries;

• All Defence City residents must receive permission from State Service for Export Control to start exports. The state has 15 days to consider each application. 

Stage:
Unanimously approved by the Verkhovna Rada’s Committee on Finance, Taxation, and Customs Policy.

Initiator:
A group of 130 Members of Parliament from the ‘Servant of the People’ and ‘Holos’ factions, led by Davyd Arakhamia.

What’s next:
The draft will be considered by Parliament in July.

ON THE MOVE: Professional movement, promotions and industry news.

Know someone in the defense tech space who has made a professional move? Drop us a line at [email protected]! 

• Federico Borsari started a new position as non-resident fellow of the Transatlantic Defense and Security Program at the Center for European Policy Analysis, a think-tank. He previously worked as a resident fellow at the same center.

• Andrey Buzarov, has started a new position in the British Ukrainian Chamber of Commerce as strategic advisor. He is also working as an independent strategy consultant.

• Tulip Tech, a Dutch producer of drone batteries, is seeking a country representative in Ukraine to expand local partnerships and sales.

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While tackling data parsing, filtering, clustering, and team management challenges, the company developed OBRIY. This product processes collected information and is now being transformed into a software-as-a-service platform for analytical and situational centers. 

“We’re seeking $400,000 to develop an AI-core and search module mobile version of Obriy and to improve support of the product. This investment will fast-track innovation and help us shape the future of geospatial intelligence,” said Vadym Hlushko, CEO and founder of CyberBoroshnoDigital.

MUST READS:

• The EU and Ukraine have launched a new innovation partnership, BraveTech EU, to foster cooperation between Ukraine’s Brave1 and EU programs like the European Defense Fund and the EU Defense Innovation Scheme. The joint investment program carries a price tag of €100 million (approximately $116 million), with each side contributing half.

• For the first time ever, Russian soldiers voluntarily surrendered to a ground robot controlled by the Ukrainian military. 

• Norwegian defense company Radionor Communications has opened a service center in Ukraine to expedite the maintenance of its products. The company supplies EW-resistant communication technologies to the Ukrainian military.

• The first batches of Ukrainian defense products will be manufactured at a plant in Denmark next year as part of a joint venture, according to Oleksandr Kamyshyn, advisor to Ukraine’s president. The Danish side will fund the project, which will involve both Ukrainian and Danish specialists.

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