Russian UCAV manufacturer Kronstadt on the brink of economic collapse
Baykar's rival, the Russian competitor Kronstadt, which stood out in the unmanned aerial vehicle (UAV) race, has reached the point of bankruptcy due to both military attacks and economic problems.
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While Baykar, one of Turkey's leading companies in the global UCAV market, continues to make a name for itself with its exports and momentum, one of its most ambitious rivals, the Russia-based JSC Kronstadt, has been dragged into a major crisis. The company, known for its "Orion" unmanned aerial vehicle, which is the direct counterpart to the Bayraktar TB2, has been forced to file for bankruptcy following a series of blows.
In 2025, Kronstadt's UCAV production facilities in Dubna, near Moscow, were heavily damaged by a kamikaze drone attack by the Ukrainian army. While this attack caused major damage to the company's production infrastructure, the process was further aggravated by the restriction of international access to modern technology. It is not just costs and technical restrictions, but also the imposed embargoes and the withdrawal of foreign investors that have cornered Kronstadt.
RISING DEBT AND CONTINUOUS LAWSUITS
The difficulties the company is experiencing have also manifested in the financial sphere. With a court filing made at the end of March 2026, Kronstadt's bankruptcy process officially began. A total of 154 lawsuits filed against the company in the last year and a debt burden exceeding 28 million euros point to the current dire situation. In particular, the withdrawal of financial support by one of its main investors, AFK Sistema, in 2022 due to concerns over Western sanctions, was recorded as a turning point that is difficult to overcome.
While Baykar positions Turkey among the world's top three countries in UCAV production, Kronstadt's loss of momentum in international competition has not gone unnoticed. In defense industry circles, it is stated that the company is struggling to survive even in its domestic market and that the possibility of liquidation is on the agenda.
Due to economic pressure, a heavy debt burden, and operational losses, it is becoming increasingly difficult for Kronstadt to maintain its existence. While Baykar's global rise continues, the future of Kronstadt remains in great uncertainty.