US drone sale to Ukraine hits snag - sources

Workers prepare an MQ-1C Gray Eagle unmanned aircraft vehicle for static display at Michael Army Airfield in Utah. This September 15, 2011, US Army handout photo was taken by Reuters February 6, 2013. REUTERS/U.S. Army/Spc. Latoya Wiggins/Handout

Two people familiar with the matter say that the Biden administration's plans to sell four large, well-armed drones to Ukraine was halted due to the possibility of its sophisticated surveillance equipment falling into the hands of enemies.

The Pentagon's Defense Technology Security Administration, which is responsible for keeping high-value technology secure from hostile hands, raised technical objections to the sale. Three people confirmed that the White House had approved the plan, which circulated since March.

Reuters first reported the plan to sell Ukraine four MQ-1C Gray Eagle drones, which can be armed using Hellfire missiles for use against Russia.

Concerns that the surveillance and radar equipment contained in the drones could pose a security threat to the United States if they fell into Russian hands led to objections to the export of drones.

Sources claimed that this issue was not considered in the initial review, but was brought up during meetings at the Pentagon last week.

"Technology security review are a standard procedure for the transfer U.S. defense articles abroad. Each case is evaluated on its merit. According to Sue Gough, spokesperson for the Pentagon, national security concerns can be raised through the established process.

A decision is being made on whether to continue the deal. However, the timing of any decision is still uncertain.

The best way to make the sale move forward is to replace the radar and sensor packages with something simpler, though that can take several months.

Congress could block the sale of drones if the case is allowed to proceed, but that was deemed unlikely.

People familiar with the matter said that the four General Atomics-made Gray Eagle drones were initially intended to be sent to the U.S. Army.

According to Army budget documents the Gray Eagles were worth $10 million each.