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

On 15 July, the European Commission and Ukraine signed a new defence industrial partnership. The Commission also launched the EU-Ukraine Drone Deal to deepen cooperation 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.

The initiatives were announced during European Commission President Ursula von der Leyen’s 11th visit to Kyiv since the start of Russia’s full-scale invasion

“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,” von der Leyen said. “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

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.

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.

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 is built around joint ventures between Ukrainian and European companies. 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 scheduled to take place in Brussels in September.

One billion euros for drones under the €90 billion Ukraine Support Loan

The European Commission has 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 30 June.

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 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.

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