Dear Investors and Friends of D3,

Today marks 1000 days since the global order was turned upside down.

During this day, President Zelenskyi presented his top 10 "sustainability plan":

1. Unity
   • No elections during the war. It’s unconstitutional.
2. Frontline
   • New management approach in the army, creation of the post of Military Ombudsman.
   • New system of contracts for the military, keeping the current age of mobilization.
3. Weapons
   • Drones are a priority with 30,000 long-range units planned.
   • Production of 3,000 cruise missiles and expansion of the Neptune program.
   • Launch of the technological rate for innovation.
4. Budget
   • Localization of production, procurement of Ukrainian products.
   • Deregulation, insurance for military risks.
   • Business security and promotion of honest relations.
5. Energy
   • Sustainability of regions and energy generation.
   • Priority given to nuclear generation.
6. Security
   • Modernization of shelters, metal detectors in schools and government buildings.
   • Strengthening of the state border.
7. Communities
   • Tax relief for frontline territories.
8. Human capital
   • National barrier-free standard.
   • Elimination of the influence of the Moscow church.
   • Implementation of multiple citizenship, renewal of the diplomatic service.
9. Culture
   • Creating a "cultural Ramstein".
   • Assistance to Ukrainian agencies abroad.
10. Heroes Policy
    • Rehabilitation departments in every community by 2025.
    • Veteran spaces, social support, and apartments for veterans.
    • Reintegration of veterans into civil society.

This is also our first newsletter since the U.S. presidential election results. While the initial statements and nominations may raise concerns, I can assure you that there is no panic in Ukraine. We have been in close communication with the government, businesses, and military units, and there have been no changes to strategy or operational focus.

Our engagement with Europe has intensified, particularly with the Nordic countries. The governments of Denmark, the Netherlands, and Norway are actively launching initiatives to procure Ukrainian weapons and invest in Ukrainian innovation. They recognize the value of Ukraine’s extensive range of combat-proven solutions, which are expected to scale rapidly into other markets this year. These governments are also encouraging Ukrainian defense producers to establish a second base in their regions, and we are supporting them in creating the right incentive packages. Currently, five of our portfolio companies are well-positioned to expand into Europe this year.

Defense tech must align with ESG principles to unlock its full potential, attract funding more aggressively and proudly, and innovate at the speed required to outpace adversaries. A shift in mindset is overdue.

On the topic of ESG, M&T Bank recently notified us that D3’s accounts are being shut down. Although no reason was given, we know the combination of defense and Ukraine is incompatible with the ESG criteria many banks apply. Similarly, many of our portfolio companies face challenges opening standard bank accounts in the EU and UK, often resorting to payment services or, at best, using platforms like Revolut. During due diligence, they are frequently forced to frame their products under agricultural or law enforcement use cases. This problem disproportionately impacts Ukrainian founders.

Despite these challenges, D3 has secured new banking relationships with SVB and Hingham in the U.S., but the friction for defense tech companies remains unnecessarily high. Anton recently met with economist Timothy Ash in London to collaborate on incorporating national security considerations into ESG frameworks.