Russia pours billions into drone industry, fueling surge in Shahed attacks

Defense Express reported the information.

Russia is channeling at least $3 billion into its drone sector, with around 900 companies now participating in the production of unmanned aerial vehicles (UAVs), according to official Russian statistics. About 70% of these firms are small and medium-sized businesses, employing roughly 7,000 people. This surge in investment and industrial mobilization has led to a sharp rise in the number of Shahed and other long-range drones used in strikes against Ukraine.

Between 2022 and 2025, the Kremlin allocated a minimum of 243 billion rubles (about $3 billion) specifically for expanding drone manufacturing. Over the next three years, Russia plans to spend an additional 112 billion rubles (approximately $1.38 billion) on further scaling up UAV production, not including military budget expenditures.

Much of this funding is disguised as support for “civilian” programs, such as agricultural drone development, allowing Russia to mask the true scale of its military drone buildup. As a result, overall drone output in Russia has increased at least 2.5 times since 2023, with long-range drone production growing fivefold.

A key part of Russia’s strategy is the concept of “strategic depth,” which spreads out drone manufacturing across the country to prevent a single attack from crippling the entire supply chain. The Alabuga industrial zone has become a major hub, employing tens of thousands of workers to assemble Shahed (Geran-2) 'kamikaze' drones. The project is now led by the company Albatros, which previously focused on agricultural equipment.

This massive investment and industrial reorganization have enabled Russia to sustain and intensify its drone campaign against Ukraine, raising concerns about the evolving threat on the battlefield.