EU launches Ukraine defence industrial partnership, Drone Deal and disburses €1 billion for drones *

On 17 July, the European Commission and Ukraine signed a new defence industrial partnership, marking a major step forward in the integration of the European and Ukrainian defence industries. The Commission also launched the EU–Ukraine Drone Deal to deepen co-operation on drone and counter-drone technologies. Finally, the Commission disbursed a further €1 billion to support Ukraine's drone capabilities under the €90 billion Ukraine Support Loan.

European Commission President Ursula von der Leyen said: “Our defence industrial partnership integrates Ukraine‘s defence economy the same way we integrate our markets: By removing barriers and aligning our standards as quickly as possible - from defence procurement to the protection of intellectual property. Allowing for a closer cooperation of our defence industries and joint ventures. Together, we are harnessing our shared industrial strength for our common security.”

These initiatives will enable Ukrainian and EU companies to accelerate the development of critical defence capabilities, to strengthen joint industrial production and to work together on EU-funded defence research and development.

EU-Ukraine Defence Industrial Partnership

Building on the existing bilateral drone agreements between Ukraine and EU Member States, the new partnership will provide a single, coherent EU–Ukraine framework to facilitate, coordinate and support their full implementation.

The EU and Ukraine have agreed to promote the joint production of drones and counter-drone systems between Ukraine and EU Member States by the end of 2026. The agreement aims to rapidly scale up the production and deployment of battle-proven capabilities to counter drones and missiles, while providing the long-term predictability needed to strengthen investment and expand defence industrial capacity in both Ukraine and the European Union.

This cooperation aims to protect against low- to mid-range drones and missiles, to deploy at scale battle-proven drone systems that may be stocked outside the territory of Ukraine, and to provide both defence industrial bases with the predictability needed to decisively step up investment and production.

Building on this approach, the EU and Ukraine will expand their defence industrial cooperation to the joint production of anti-ballistic missiles by 2028, helping to address critical air defence capability gaps. The partnership will prioritise cost-effective missile systems while continuing to strengthen other essential defence capabilities, including artillery production and key supply chains.

The new partnership will deepen the integration of the European and Ukrainian defence industries by removing barriers to cooperation and accelerating the alignment of standards. Work will advance across key areas, from defence procurement to the protection of intellectual property, enabling companies on both sides to cooperate more seamlessly and strengthen Europe's common security.

EU-Ukraine Drone Deal

The EU–Ukraine Drone Deal will bring together Europe's industrial capacity and Ukraine's expertise in drone innovation. It provides a European framework and coverage to incentivize further national deals and then to provide funding for the scale up and extension of joint production and orders. It is built around joint ventures between Ukrainian and European companies, and it will serve as a model to rapidly scale up the production and deployment of battle-proven capabilities in other areas, such as ballistic and anti-ballistic missile systems, and to work across the whole defence supply chains. The Deal will combine Ukraine's battlefield-tested capabilities and Europe's industrial strength and manufacturing scale, supporting targeted technology transfers and investment in dual-use sectors across Ukraine.

The Deal will accelerate the development and production of next-generation drones and counter-drone systems, ensuring Ukraine has the capabilities it needs today while strengthening Europe's defence readiness for the future.

The Commission will now work with Ukrainian partners and the European drone community in view of the first meeting of the 18 founding members is scheduled to take place in Brussels in September. These include ORQA d.o.o., Indra Group, Fincantieri, WB Electronics/WB Group, Destinus, Delair, RSI Europe, TERMA A/S, Quantum Systems from EU Member States. Selected Ukrainian members are LLC Skyfall Industries, LLC Greentech Harvest, LLC Tencore, LLC Deviro, LLC Vyriy Industry, Scientific production Company ‘ATHLON AVIA' LLC, LLC TEHAVTOFART PIVDEN" (TAF Industries), UFORCE and F-Drones.

€1 billion for drones under the €90 billion Ukraine Support Loan

The European Commission today disbursed a further €1 billion to Ukraine for drone procurement. This represents the second payment under the first €6 billion tranche of the Ukraine Support Loan dedicated to drone procurement, a key capability enabling Ukraine to withstand Russia's war of aggression.

This disbursement follows the Commission's first €3.2 billion instalment to Ukraine under the dedicated Macro-Financial Assistance programme made on 25 June and the €3.9 billion as the first payment dedicated to drone procurement made on June 30.

Looking ahead, the Commission has also approved a €10 billion disbursement plan to finance additional drones, missiles and fighter aircraft, underlining the EU's long-term commitment to Ukraine's defence and to a stronger, more integrated European defence industrial base.

BraveTechEU, European Defence fund and defence innovation

BraveTech EU, the joint EU–Ukraine initiative initiative to fast-track military technology for Ukraine's defence industry also moved to its next phase by recognising six companies selected to advance promising defence technologies: Soraccel, EdgeX Robotics, Smaesh, Kova Labs, Tempterno Defence and Rannon.

In the next phase of the programme, these solutions will undergo testing under conditions reflecting the war theatre in Ukraine, thereby helping accelerate the development and deployment of technologies that respond to real battlefield needs.

Finally, Ukraine has been fully associated to the European Defence Fund (EDF) and to the European Defence Industry Programme (EDIP), enabling Ukrainian and EU companies to form consortia and participate together in collaborative defence research and development projects supported by the Fund. With a budget of €7.3 billion for 2021–2027, the EDF supports the development of cutting-edge defence capabilities and strengthens cooperation across the European defence industry.

Background

European Commission President Ursula von der Leyen is in Kyiv for her 11th visit to Ukraine since the start of Russia's full-scale invasion, at a moment when the tide is turning for Ukraine. Building on the European Union's unprecedented €90 billion loan and sustained political, military and financial support, the visit focused on stepping up defence cooperation, including urgent measures to protect Ukraine's skies from continued Russian drone and missile attacks, as well as new initiatives to integrate European and Ukrainian defence industries to speed up and scale up the production of critical capabilities. 

The visit underlines the European Union's unfailing commitment to support Ukraine as it defends its independence and territorial integrity against Russia's ongoing aggression.

In February 2026, the European Parliament and the Council adopted Regulation (EU) 2026/467 establishing the Ukraine Support Loan (USL). The Regulation provides for up to €90 billion in support to Ukraine. Following Ukraine's submission of its Financing Strategy in March 2026, the Council adopted, on 23 April 2026, an Implementing Decision determining the assistance to be made available to Ukraine in 2026. The Decision provides for up to €45 billion in support for 2026, comprising €16.7 billion in budget support and €28.3 billion in support for Ukraine's defence industrial capacities.

The budget support component is split equally between a top-up to the Ukraine Facility and a new Macro Financial Assistance operation, each amounting to up to €8.35 billion. The Commission disbursed the first €3.2 billion instalment to Ukraine under the €90 billion Ukraine Support Loan on 25 June. Funding decisions are based on Ukraine's evolving needs. All expenditure is subject to agreed conditions and monitoring. Since the start of Russia's war of aggression against Ukraine, the EU and its member states have provided €216.7 billion in overall support to Ukraine and Ukrainians, including €3.8 billion from the proceeds of immobilized Russian assets, more than anyone else.

For more information

Macro-Financial Assistance to Ukraine

Commission takes preparatory steps on financial support for Ukraine and boosting drone production

Support to Ukraine

Factsheet - EU solidarity with Ukraine

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