Ukraine and EU seal first joint drone-production deal

Ukraine and the European Union sealed a drone-production deal in Kyiv during ceremonies marking Ukraine’s Statehood Day. Ursula von der Leyen said the agreement aimed to combine Ukraine’s combat-tested expertise with Europe’s manufacturing scale, secure production sites and technological resources.

The deal is the first of its kind intended to cover countries and companies across the European Union, making it broader than the separate drone agreements Ukraine has signed with individual partners. It comes after more than three years of war, during which drones and anti-drone systems have become central to reconnaissance, targeting and strike operations on both sides of the front.

Von der Leyen framed the agreement as a way to avoid duplication and speed output. Ukraine has accumulated specialized knowledge in drone warfare since Russia’s full-scale invasion in 2022, while the European Union has the financing and industrial base to build at scale. The agreement is meant to support immediate wartime needs and lay the groundwork for joint production beyond Ukraine.

On July 7, 2026, Zelenskiy signed three more drone deals with Denmark, Estonia and the Netherlands, bringing the total to nine. Earlier in 2026, Ukraine also signed defense agreements with Qatar, Saudi Arabia and the United Arab Emirates that included Ukrainian expertise in countering drones.

On April 1, 2026, the European Commission took preparatory steps for the Ukraine Support Loan with a focus on Ukraine’s drone industry. On June 25, it announced the first €3.2 billion instalment under the EU’s €90 billion loan. Five days later, on June 30, the Commission began disbursing €3.9 billion as the first payment in an around €6 billion tranche dedicated to drone procurement. The EU says the wider loan can provide up to €28.3 billion for Ukraine’s defense-industrial capacities in 2026. The European Union Military Assistance Mission for Ukraine has trained 95,000 Ukrainian soldiers.