Ukraine to purchase Chinese drone components with EU funds – FT
Drone Industry
Ukraine has received permission from the European Union to use part of the defence loan to purchase Chinese components for drones.
The decision was made due to a shortage of the relevant components among European manufacturers, the Financial Times reports.
Terms of the loan
Under the terms of the EU loan programme, weapons purchased with the bloc’s funds must predominantly originate from EU countries, Ukraine or other approved partners, including Canada.
For suppliers outside the list of approved countries, the share of components in a contract may not exceed 35%. In addition, the rules stipulate that such purchases must not run counter to the EU’s security and defence interests.
When an exception is granted
At the same time, the regulations allow for exemptions. If the required products cannot be obtained promptly or in sufficient quantities from authorised suppliers, Ukraine may apply to the European Commission for special permission to purchase them from other countries.
Kyiv used this mechanism when receiving the first defence tranche of EUR 5.9 billion, earmarked for the purchase of drones. This allowed Ukraine to acquire certain Chinese components that are currently in short supply on the European market.
The decision indicates that the European Union’s defence industry is not yet capable of fully meeting Ukraine’s needs, despite Brussels’ efforts to strengthen its own manufacturing base and tie military assistance to procurement from European countries.
At the same time, the exemption demonstrates China’s important role in global defence industry supply chains. Although the EU accuses Beijing of supporting Russia’s military-industrial complex, Brussels acknowledges that Ukrainian weapons production also depends on Chinese components.
As reported, during the second day of the Ukraine-EU Business Summit in Brussels, Ukraine and the European Union signed a declaration on cooperation in investment in advanced and disruptive technologies. The document was signed by the European Commission and Ukraine’s Ministry of Defence.
As a reminder, on 23 April, the Council of the EU approved the final key legislative act paving the way for a EUR 90 billion loan to Ukraine. The decision allows the European Commission to begin disbursing the funds as early as the second quarter of 2026.
