Under current technological constraints, meeting certain critically important needs solely through domestic production has been technically impossible. This was stated today, February 16, at a press conference by the Minister of High-Tech Industry, Mkhitar Ayrapetyan, in response to questions about why Armenia is purchasing American drones while authorities have claimed that UAVs are produced domestically.
Local Limitations
The minister noted that V-BAT-type drones, produced by Shield AI, are not currently manufactured by Armenian defense industry enterprises. If similar technologies and solutions were already being produced locally, there would be no need to purchase or import such systems.
Ayrapetyan emphasized that supporting local production and placing government orders with Armenian companies remains a direct mandate of the ministry. However, he added that it is important to realistically and adequately assess the country’s current capabilities, acknowledging that the path to producing globally competitive products is still quite long.
Technological Dialogue and Knowledge Transfer
The minister highlighted that Shield AI’s products are among the best in the world in their segment. In this context, cooperation with the company opens a new chapter for Armenia — not only in defense but also in terms of knowledge transfer, technology sharing, and joint research and development.
This engagement is no longer limited to interactions through the Ministry of Defense; the Ministry of High-Tech Industry is now directly involved in fostering dialogue aimed at strengthening Armenia’s domestic scientific, research, and production potential.
Ayrapetyan stressed that the decision is crucial both for Armenia’s armed forces and for the development of Armenian-American strategic cooperation in the defense industry. According to him, given current technological limitations, meeting certain critically important needs solely through domestic production was technically impossible, which explains the chosen approach.
Armenian UAVs for Export?
The minister also hinted that Armenian UAVs are among the products for which the government has issued export licenses. Due to the sensitive and classified nature of the information, the state refrains from disclosing additional details. However, in the near future, certain types of Armenian military products could be exported to various countries.
Why 2025 Became a Turning Point
Ayrapetyan noted that until 2025, Armenian defense industry companies could not realistically target international markets. The sector is still in its early stages, with only a few years of active development. Moreover, the state’s initial priority was to meet the needs of its own armed forces.
During the first three-year contracts between the government and defense companies, the primary objective remained fulfilling state orders for the army. This applies not to all companies in the sector, but to a select few leading enterprises that have managed to expand their production and technological capabilities.
The minister reminded that from 2023 to 2025, the Armenian government placed state orders for the defense industry worth approximately 172 billion drams. A significant portion of these funds was allocated to developing the companies’ production, professional, and technological capacities.
Thanks to these investments, certain enterprises were able not only to strengthen their positions in the domestic market but also to begin establishing contacts with foreign partners and exploring entry into international markets.
Entering External Markets and Risk Assessment
Ayrapetyan emphasized that decisions to grant export permits are made only after a comprehensive assessment of political, economic, and other risks to the Republic of Armenia. Exporting military products is a complex, multi-stage process that requires a balanced and professional approach.
At the same time, the government views the defense industry as one of the key segments of the economy and potentially one of the export-oriented sectors, whose development will continue to be supported in the future.
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