The aircraft was designed by Nikolai Polikarpov to replace the U-1 trainer (a copy of the British Avro 504), itself known as Avrushka to the Soviets.
The prototype of the U-2, powered by a 74 kW (99 hp) Shvetsov M-11 air-cooled five-cylinder radial engine, first flew on 7 January 1928 piloted by M.M. Gromov.