Gary Rafalovsky: Cyprus is an EU leader in the export of uncrewed systems worldwide

Cyprus already has a unique position as an EU leader in the export of uncrewed systems worldwide, according to Gary Rafalovsky, Director of Swarmly – Europe's largest volume manufacturer of Uncrewed Systems – and this is not in small part due to Swarmly’s business activities, he added.

As such, he said the company hopes that the Government will take an even more active role in defining EU defence activities in this field.

Swarmly manufactures aerial and surface uncrewed systems used by military and homeland security forces in Africa, Southeast Asia and Eastern Europe. Specifically, H10 Poseidon VTOL UAS is considered the best uncrewed system in the Armed Forces of Ukraine as a tactical surveillance and reconnaissance system. H12 Poseidon VTOL UAS is the best-in-class heavy lift vertical take-off and landing (VTOL) system capable of shipboard operations and B5 Hydra USV is a naval platform for patrol and coastal defence activities.

Read Rafalovsky’s interview with GOLD magazine below:

Our part of the world has long been defined by conflict and uncertainty. Why do you believe that it has now become important for Cyprus to invest in the defence sector?

Cyprus is not only located in an extremely volatile region but it is also one of the very few politically stable and rapidly developing countries in the Eastern Mediterranean. At the same time, Cyprus has a real enemy to the north, which is constantly undermining the very existence of the country and threatening it with military force, all the while occupying a significant part of its territory. As a small country with limited resources, it is extremely important to spend its defence budget on areas that significantly increase its defences, so it is very important to study the development of defence technologies and select the most applicable.

While European defence R&D spending increased significantly – it reached €11 billion in 2023, more than double the amount spent in 2016 – the US and China still outspend the EU. How does this disparity impact your ability to innovate and compete on a global scale? Are there any other structural issues on a European level that need to be addressed?

The biggest issues with defence R&D spending in the EU, which adversely affect the overall defence industry development, are the apparent lack of focus on practical innovation and the significant bureaucratic hurdles that SMEs face. For example, Swarmly has never participated in any R&D initiatives at the EU level simply because none of the existing programmes can help grow its business. Swarmly’s products are best in class because the company invested over €2 million in their development. One initiative to significantly improve innovation would be to give procurement preferences in defence spending to SMEs, as these entities are the only ones that can truly innovate. This is what the US has been doing for the last 30 years and it works very well.

On a local level, does the relatively small size of Cyprus’ defence cluster present challenges in competing with larger ecosystems or are there unique strengths you can leverage?

Swarmly focuses predominantly on the business aspects of its growth, which means manufacturing and selling more systems to more customers, while the remainder of Cyprus’ defence cluster mainly focuses on taking part in EU R&D programmes and grants. Swarmly is unique in that it doesn’t really have to compete directly with larger defence ecosystem participants, as its products are recognised as best in class worldwide. However, the company would be able to grow much faster if Cyprus were to participate in more Government-To-Government (G2G) defence contracts, as the country now has a unique advantage in the uncrewed systems defence field.

Cyprus is strengthening its defence ties with nations like the US and France and aims to allocate 2% of its GDP to defence spending. Has this impacted your work? How can Cyprus become a key player in Europe’s defence ecosystem?

Cyprus is undeniably a part of the West, so closer defence ties with the US, France, Greece and Israel are very welcome and absolutely natural. While Swarmly doesn’t really benefit directly from such ties, the country’s strong defence posture leads to peace, stability and prosperity that benefit everyone. Cyprus already has a unique position as an EU leader in the export of uncrewed systems worldwide – not in small part due to Swarmly’s business activities – and the company hopes that the Government will take an even more active role in defining EU defence activities in this field.

Finally, as drones, robotics and AI take centre stage in the theatre of modern warfare, what do you see as the next defining innovation?

The next defining innovation is taking place right now – as is almost always the case during large-scale military conflicts – and it lies in uncrewed systems. For example, in the war waged by the Russian Federation against Ukraine, Ukraine has been able to defend itself successfully against a much larger and resource-rich adversary for three years, mainly due to the use and rapid evolution of uncrewed systems. As Russia catches up, the war is becoming more destructive and deadly. The shift from artillery to uncrewed systems as a predominant effector has already happened; uncrewed systems are now accountable for over 80% of battlefield losses and this dominance will only increase over time. This trend will propagate worldwide and completely redefine military structures and operations everywhere. It also poses significant dangers as the entry barrier into high-efficiency military operations has been lowered considerably and has become available to Violent Non-State Actors (VNSAs), such as ISIS, so the development of effective countermeasures becomes critical.

Collaborations:

Swarmly has entered into a number of partnerships with foreign and domestic companies to add different payloads to its platforms, including EO/IR gimbals, electronic warfare and situation awareness systems, etc. These include companies like SignalGeneriX (Cyprus), Leonardo (Italy), NextVision (Israel), AIO (Egypt), TEREM (Bulgaria) and Yugoimport (Serbia).

This article was first published in the March issue of GOLD magazine. To view it click here