Ukraine to purchase Chinese drone components for €6 billion using EU funds

Ukraine has received permission to purchase Chinese drone components using funds from a European Union tranche — this is the first exception to the Ukraine support program, under which €60 billion is designated for weapons procurement.

This was reported by the Financial Times, citing sources.

Kyiv managed to secure an exception for the purchase of components worth a total of €6 billion. According to the FT’s assessment, this decision points to problems in the EU’s defense manufacturing sector, despite the bloc’s drive to strengthen its industrial base, and also highlights dependence on China for supplies.

Under the terms of the loan extended to Kyiv, defense products purchased using the bloc’s funds must come from European manufacturers, approved partners, or Ukraine itself. The regulation states that arms procurement must not “contradict the security and defense interests” of the EU.

EU member states approved the loan to Kyiv on April 22, after which it was confirmed by the European Council. Simultaneously with the loan’s approval, the European Union adopted its 20th package of sanctions against Russia. In June, Euractiv, citing three European officials, reported that the first tranche to Ukraine would not include nearly €6 billion for defense spending — it would instead contain €3.2 billion in budget support.

The Ukrainian newspaper Yevropeyska Pravda previously reported on the distribution of the loan funds: €30 billion from the EU would go toward budget assistance and €60 billion toward defense spending, together covering two-thirds of Ukraine’s needs over two years. The military funds would be provided to Kyiv without additional conditions, while budget financing would only be granted in exchange for reforms. A source at the publication clarified that these were not new requirements but commitments Kyiv had already undertaken, including as part of the EU accession process.

According to Yevropeyska Pravda, the first defense tranche will amount to €6 billion and will go toward the purchase and production of drones. In exchange, Ukraine must open an account at Deutsche Bundesbank and grant the European Union the right to monitor expenditures. The first payment, as the publication noted, must be made no later than June 2026.

Russia condemns any military assistance to Kyiv and believes it only prolongs the conflict but cannot determine its outcome. In June, President Vladimir Putin stated that “the entire West” was helping Ukraine, but that it was not prepared to strike from its own territory, understanding the prospect of a Russian response.