maker of Ukraine’s Flamingo cruise missile, is in talks with European companies to launch a new air defense system next year, a senior executive told . This system would offer a low-cost alternative to the system, which is increasingly difficult to obtain.
Faced with the need for governments to defend their airspace while wars in Ukraine and Iran sow global instability, Denys Shtilierman, co-founder and chief designer of Fire Point, said his goal is to reduce the cost of intercepting a ballistic missile to less than a million dollars.
Shtilierman also indicated that Fire Point is awaiting government approval for an investment from a conglomerate that values the company at $2.5 billion and that would open the door to new business opportunities, including low-orbit satellite launches.
Years of experience acquired on the battlefield against Russian forces have made Ukraine a benchmark in innovation in low-cost defense technology. With the outbreak of the war in the Gulf, those from have taken advantage of that experience to sign security agreements with governments throughout the region.
Many Ukrainian defense companies are now looking to export their surplus capacity and benefit from the global boom in military spending. While the government recently eased wartime export restrictions, each proposed deal remains subject to rigorous controls and state approval.
An alternative to the US
Ukraine and many other Western allied nations rely heavily on the American-made Patriot system to intercept ballistic missiles.
However, Patriot missiles are becoming increasingly scarce due to their extensive deployment in the Persian Gulf against Iranian attacks. Furthermore, the only European anti-ballistic system, Italian-French manufactured, is produced in relatively small quantities.
To shoot down a ballistic projectile, the Patriot system, manufactured by Raytheon and Lockheed Martin (LMT.N), typically requires two or three air defense missiles, each costing several million dollars, according to Shtilierman.
“If we can reduce the cost to less than a million dollars, it will represent a radical change in air defense solutions,” he said in an interview. “We plan to intercept the first ballistic missile at the end of 2027.”
“If we can reduce the cost to less than a million dollars, it will represent a radical change in air defense solutions”
Shtilierman declined to reveal the names of the European companies involved in talks to develop the new system, but said Fire Point is “deeply interested” in collaborating on radar systems, missile targeting and communications, areas in which it lacks expertise.
Shtilierman noted that European companies such as Weibel, Hensoldt HAGG.DE, SAAB SAABb.ST and Thales TCFP.PA have good radar solutions.
Founded, Fire Point is the largest Ukrainian manufacturer of long-range drones used in most attacks on Russian territory.
In recent months, its FP5 long-range cruise missile, commonly known as the Flamingo, has also been used to attack Russian military installations and weapons factories, including a ballistic missile plant nearly 1,400 kilometers inside Russian territory.
Shtilierman indicated that Fire Point is in the final phase of development of two supersonic ballistic missiles.
The smaller FP-7 missile, with a range of about 300 km, will see its first military deployment “in the near future,” he said, describing it as similar to Lockheed Martin’s short-range ballistic system.
The larger FP-9 missile, capable of carrying an 800 kg warhead up to 850 km, is about to enter the testing phase and would put Moscow within reach of Ukraine’s ballistic arsenal, he added.
Shtilierman declared that the attacks on Moscow, a city surrounded by some of the most formidable air defenses in the world, would cause a “radical change in the Russian mentality and that of the country’s top leadership.”
Fabian Hoffmann, a missile expert and senior researcher at the Norwegian Defense College, said that while Russia has experience successfully shooting down ATACMS missiles, more widespread use of ballistic missiles could test Russian air defenses, already weakened by Ukrainian attacks.
And while Fire Point’s goal to launch a low-cost air defense system by 2027 was “ambitious,” he said that beyond Ukraine’s military needs, there would be strong demand from other governments, even if its kill rate per missile was lower than the Patriot’s.
Denys Shtilerman, chief designer and co-founder of the company Fire Point, speaks during an interview with Reuters, April 2, 2026.
The new oriental factor
Ukraine’s antitrust authority has until October to decide on a proposed $760 million acquisition of 30% of Fire Point’s shares by a Middle Eastern investor, Shtilierman said.
Ukrainian media have identified the suitor as the Emirati defense company Edge Group. Edge Group and Ukraine’s antitrust authorities did not respond to requests for comment.
The investment would be the first step in a project to build a space launch terminal in the UAE, with the aim of eventually establishing a constellation of European satellites in low orbit. Shtilierman stated that the country’s location next to the Indian Ocean and its geographical conditions are favorable for space launches.
“We have built a carbon winding machine that allows us to wind a large solid rocket booster for launching satellites,” he explained, noting that the project is still in the conceptual phase, although agreements already exist “with a couple of Western companies.”
Regardless of whether it comes to fruition, Shtilierman said Fire Point will not accept more investors until it has demonstrated the success of its missile defense system, which will use the company’s FP7 missile.
Meanwhile, Fire Point has received expressions of interest from Gulf states for the purchase of its current drones and is awaiting approval from the Ukrainian government to begin exports. Shtilierman indicated that the company has the capacity to export up to 2,500 long-range drones per month.
However, exporting the Flamingo missile is much more difficult due to regulatory barriers, he explained.
Fire Point says it makes hundreds of long-range attack drones a day, each costing around €50,000, and three Flamingo missiles, costing around €600,000 each. He acknowledged some production problems with the Flamingo, including engine manufacturing.
Fire Point will increase production of the Flamingo when a new self-made engine goes into mass production in October and a rocket fuel plant in Denmark comes online later this year, it said. The plant is awaiting two final approvals from Danish authorities.
