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# Lithuanian Drone Maker UDS Launches Joint Venture in Ukraine
- URL: https://www.adriadefense.com/lithuanian-drone-maker-uds-launches-joint-venture-in-ukraine/
- Published: 2026-10-08T09:00:34.000Z
- Updated: 2026-10-08T09:00:33.000Z
- Description: Lithuania’s Unmanned Defense Systems has established UDS Ukraine to work directly with military units on drone deployment, training and development.
- Author: AdriaDefense Desk
- Tags: Lithuania, Ukraine, Drones, CEE, Industry, Loitering Munition

**Lithuanian defense technology company Unmanned Defense Systems has established a permanent operation in Ukraine through a newly created Ukrainian joint venture, expanding its direct cooperation with military units and the country's defense technology sector.**

UDS Ukraine will support deployment of the company's unmanned systems, train operators and work directly with Ukrainian defense users and technology partners. The company announced the move in Kyiv on October 6.

The new operation is designed to shorten the development cycle between battlefield requirements and technical changes to UDS systems. Ukraine will also provide operational feedback that can be incorporated into future versions of the company's unmanned platforms and software.

## UDS Ukraine will work directly with military units

Rather than operating solely as an external supplier, UDS plans to maintain a permanent engineering and operational presence in Ukraine.

The Ukrainian team will support product deployment, operator training and cooperation with military units using UDS systems. According to the company, closer access to users should reduce the time required to translate operational requirements into technical solutions and field deployment.

UDS Ukraine is led by Stepan Veselovskyi, who has been identified as CEO and co-owner of the Ukrainian venture.

The ownership split has not been publicly disclosed. Veselovskyi told Ukrainian technology outlet AIN that the size of his stake was not being disclosed, while the formal ownership registration process was still underway as of October 7.

UDS has also not announced a Ukrainian production facility, manufacturing capacity or investment value connected with the joint venture.

## UDS combines reconnaissance, strike and command systems

Vilnius-based UDS develops an integrated family of unmanned platforms covering intelligence, surveillance, target acquisition and reconnaissance, precision strike and command and control.

Its current portfolio includes the FORECASTER ISTAR platform, AVENGER 5 precision-strike UAV, HAULER multi-payload aircraft and SWARM C2 command-and-control software.

The company designs the systems around a shared architecture that allows multiple platforms to operate within the same mission environment and integrate with third-party platforms and battle management systems.

FORECASTER is a sub-7-kilogram reconnaissance platform with published endurance of up to 270 minutes and a radio line-of-sight range of 60 kilometers. UDS says the aircraft includes capabilities intended for operations in electronically contested and GNSS-degraded environments.

The company describes AVENGER 5 as its long-range loitering munition platform, while HAULER is designed as a modular aircraft capable of carrying sensors, communications equipment, electronic warfare payloads and other mission-specific equipment.

## Ukraine becomes part of UDS development cycle

The Ukrainian joint venture gives UDS a direct route for collecting operational feedback from users rather than relying entirely on testing and customer reporting from outside the country.

That approach has become increasingly important for European drone manufacturers as electronic warfare, counter-UAS systems and battlefield tactics force unmanned platforms to adapt rapidly.

UDS says its Ukrainian operation will work with defense users throughout deployment and training while feeding operational experience back into product development.

The move also expands defense technology cooperation between Lithuania and Ukraine. Lithuanian Ambassador to Ukraine Inga Stanytė-Toločkienė supported the establishment of the permanent presence, emphasizing the importance of developing and refining technologies around operational requirements from Ukrainian forces.

UDS itself has roots outside the traditional defense sector. Co-founder and CEO Vytenis J. Buzas previously initiated Lithuania's first national satellite mission and co-founded NanoAvionics. Norwegian technology group Kongsberg acquired a 77 percent controlling stake in NanoAvionics in 2022 in a transaction that valued the company at €65 million.

AdriaDefense previously included [Unmanned Defense Systems among European defense technology startups attracting new investment](https://www.adriadefense.com/europes-defense-startups-draw-record-venture-capital-in-2025-signaling-a-strategic-shift/), after the Lithuanian company raised €3.2 million to expand its unmanned systems business.

The establishment of UDS Ukraine moves the company beyond supplying technology into a model where engineering, training and product development are carried out closer to operational users.

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### What is UDS Ukraine?

UDS Ukraine is a newly established Ukrainian joint venture created by Lithuanian defense technology company Unmanned Defense Systems. It will provide a permanent presence for working with Ukrainian military users, technology companies and other defense partners.

### What will UDS Ukraine do?

The team will support deployment of UDS systems, train operators, cooperate directly with military units and use operational feedback to help develop and modify unmanned systems.

### Which drones does UDS manufacture?

UDS develops the FORECASTER ISTAR UAV, AVENGER 5 precision-strike platform and HAULER multi-payload UAV, supported by its SWARM C2 command-and-control software.

### Will UDS manufacture drones in Ukraine?

UDS has not announced a Ukrainian production facility or disclosed production capacity connected with the new joint venture. The October 6 announcement focuses on permanent local operations, product deployment, training and development cooperation.