“It’s definitely not getting easier”: BlueBird Tech CEO Valeriy Zarubin on missile development, financing and the challenges of the defense business

“It’s definitely not getting easier”: BlueBird Tech CEO Valeriy Zarubin on missile development, financing and the challenges of the defense business

Since the beginning of 2026 the Ukrainian defense company BlueBird Tech has roughly doubled its team, expanded production and the development of new products. At the same time the growth brought new difficulties: the company prepared production for new items, but did not manage to complete the product development within the planned timelines, says its CEO Valeriy Zarubin.

AIN spoke with Zarubin about how BlueBird Tech addresses these challenges, what funds it is using for development and what stage its missile direction is at. We also talked about participation in the Pentagon’s Drone Dominance program and the search for engineers abroad.

How has BlueBird Tech changed since the beginning of 2026?

The company expanded production and R&D — research and development, and began working on new directions and products. At the same time the changes concern internal organization: we are reviewing the company’s structure and management approaches.

Overall we have grown not only quantitatively but also qualitatively, roughly doubling this year. Many new people joined the team, and the company replaced some employees. At the same time we keep the core of the team and help these people learn and develop together with the business.

For now we are directing all earnings into production, R&D and further development. From time to time we take loans from private lenders and banks. Much depends on Ukraine’s partners, in particular funding. This affects Defense Tech. In addition, the Russians consistently invest in the development of their armaments. It’s certainly not getting easier.

The main task — to respond quickly and effectively to threats from the enemy and bring to fruition the products the company is already working on. 

What have been the biggest challenges the company faced this year?

One of the main challenges is the situation where production preparation has outpaced product development, because we built production a bit ahead of schedule.

We prepared production and trained people, but some items were not brought to readiness within the planned timelines. We also spent funds, yet R&D and production did not reach the necessary stage at the same time. Previously we completed development and only then opened production for a specific product.

At the moment we are finishing R&D, so production is on pause.

In addition, due to Russian attacks the company loses property and some developments. These are also challenges, but this is war.

Read also: BlueBird Tech launched rental of EW complexes «Грець», how it works

In April this year you announced the launch of a missile direction — creating air defense systems capable of intercepting enemy drones, cruise and ballistic missiles. What stage are you at now and when do you expect the first results?

This is in R&D. There’s still a long way to go. The team is designing and testing solutions. The duration of development is hard to predict. Sometimes a company plans to release a product within a year, but ultimately works on it for more than two years. This is an example from development experience in general, not a forecast specifically for the missile direction.

The main factor that affects its development is funding. Missile development requires large investments, so we cannot always direct funds to what we would like to prioritize.

How do you assess participation in the Pentagon’s Drone Dominance program? What opportunities does it open?

BlueBird Tech passed selection for the first phase of the program, but did not make it to the second. Perhaps factors we did not anticipate influenced that. Now we know what they pay attention to and how to ensure readiness on all fronts. 

Despite that, we performed very well at Drone Dominance. I think we have every chance to pass to the next phase, because much depends on the team’s cohesion, and the team worked partly American, partly Ukrainian.

Moreover, the competition itself effectively provides access to the American market. That is, it’s the start of contracting with the Pentagon.

You planned to open an R&D office in Poland. What stage is this project at and are you considering other countries?

At first we planned to open hubs, but now we are looking for engineers who can be engaged in projects remotely. After that we want to unite them into local teams.

First and foremost we are looking for Ukrainian engineers who live abroad and want to join Ukrainian defense developments. Plans are not limited to Poland. 

The hiring pace depends on the budget, so we choose those we need most right now. In the future we’d like to attract American, Asian and European engineers as well. Foreign specialists cost more, but their knowledge could be combined with Ukrainian wartime experience to create new devices.

Read also: Investments in Ukrainian DefTech: why millions of dollars end up in foreign holdings and whether this poses a threat to the economy