EU launches defense industry partnership with Ukraine

The European Union on Wednesday, July 15, launched a new defense industrial partnership with Ukraine and a joint drone production initiative aimed at accelerating arms production, strengthening Europe's defense industry and integrating Ukraine's defense sector more deeply into the EU defense system, Report's European bureau informs, citing the European Commission.

The initiative is intended to remove barriers to cooperation between defense companies, align standards and simplify joint procurement and the creation of joint ventures.

Under the EU-Ukraine Drone Deal, the sides plan to establish joint production of drones and counter-drone systems by the end of 2026. By 2028, they aim to expand cooperation to the production of missile defense systems, artillery and key defense industry components.

"Our defense industrial partnership integrates Ukraine's defense economy in the same way we integrate our markets - by removing barriers and aligning standards as quickly as possible," European Commission President Ursula von der Leyen said in Kyiv.

At the same time, the European Commission transferred another €1 billion to Ukraine for drone procurement under the €90 billion Ukraine Support Loan program. This is the second tranche from the first €6 billion allocated specifically for drone technology development.

The Commission also approved a further €10 billion funding plan covering the procurement of drones, missiles and combat aircraft.

The European Commission said Ukraine had also fully joined the European Defence Fund and the European Defence Industry Programme, allowing Ukrainian and European companies to jointly participate in EU-funded research and development of new defense technologies.