© Ella Malano
Luxembourg drone start-up LUXUAV is rapidly expanding as the country boosts defence spending, aiming to grow its workforce and production while supporting both local industry and Ukraine's war effort.
Following commitments made at the NATO summit in June, Luxembourg has agreed to allocate 2% of its Gross National Income (GNI) to defence. In doing so, the government is intent on ensuring that this spending also benefits the local economy, supporting domestic companies active in the defence sector.
Read also – Missile shields and drones: Luxembourg commits to major defence upgrades
Dual-use technology for defence and reconnaissance
One of these companies is LUXUAV, a Luxembourg-based start-up that has been producing drones for the past six months – some of which are already being used in conflict zones, including in Ukraine. Their flagship model, the LUXUAV M1, is a lightweight drone weighing 3.2 kilograms. It reaches speeds of up to 120 km/h and can fly at altitudes of up to 3,000 metres.
Though drones are produced in Luxembourg, weapons systems are not, which is why LUXUAV equips its drones with high-resolution cameras for reconnaissance. However, CEO and co-founder Nicolas Zharov stresses that the design allows for future adaptations.
"These are multi-purpose drones", he shared in conversation with RTL. "It's up to the end user to decide how they want to use them. They all come with cameras for ground surveillance, but with adjustments, they can be adapted to perform different kinds of tasks."
Founded by three partners, LUXUAV aims to help build a defence-oriented industrial base in Luxembourg, something the Grand Duchy currently lacks. "Luxembourg has the potential. What's needed is political will and the right incentives for small to medium-sized businesses to enter the defence sector", says Zharov. "Drones, whether airborne, ground-based, or aquatic, are going to be a part of daily life in the future. With the right initiatives, we could really grow this sector."
Zharov, originally from Ukraine, moved to Luxembourg at the age of 15 and maintains strong emotional ties to his home country. Reflecting this, LUXUAV has hired several Ukrainian employees, including former soldiers like Olexander Kuznitsov, who was severely wounded in the war in October 2022.
"I became a veteran in 2024, which allowed me to leave Ukraine", says Kuznitsov. "As I travelled, I began sharing insights on the kinds of technologies used on the front lines. Via contacts I ended up here in Luxembourg."
The company actively recruits a wide range of profiles, including some less traditional candidates. Co-founder Nicolas Van Beek says the precision required in drone assembly means that skills from other industries, including fashion, are highly valued.
"We look for highly precise operators. We love recruiting people from atypical backgrounds – seamstresses, for example –because their skills are perfect for assembling small cables and electronics", says Van Beek. "At the same time, we're also hiring engineers in mechanics, electronics, and radio technology.”
Driven by rising demand and heightened geopolitical tensions, LUXUAV is growing quickly. The start-up has already created 30 jobs this year and expects to grow its workforce to around 100 employees by 2026. A new production hall has already been rented and the company plans to ramp up manufacturing to 10,000 drones per month by 2027.
