The package is designed to accelerate joint development, production and research in critical defence technologies. It comes as the EU seeks to deepen industrial cooperation with Ukraine while strengthening Europe’s own defence readiness.
“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. Allowing for a closer cooperation of our defence industries and joint ventures. Together, we are harnessing our shared industrial strength for our common security.” said Ursula von der Leyen, President of the European Commission.
The new EU-Ukraine Defence Industrial Partnership will provide a single framework to support existing bilateral drone agreements between Ukraine and EU member states. The EU and Ukraine agreed to promote joint production of drones and counter-drone systems by the end of 2026.
We will bring together the best of our drone ecosystems underpinned by a drone deal.
Ukrainian ingenuity, tested every day on the battlefield.
And EU industrial strength, able to produce at speed and at scale.
We will reproduce the same with missiles. https://t.co/6eIKdl96ua
— Ursula von der Leyen (@vonderleyen) July 15, 2026
The cooperation is intended to scale up battle-proven capabilities to counter drones and missiles, while giving industry longer-term predictability for investment. It also aims to support systems that can protect against low- to mid-range drones and missiles and allow battle-tested drone systems to be stocked outside Ukraine.
The partnership is also expected to expand into joint anti-ballistic missile production by 2028. The Commission said this would help address critical air defence gaps while supporting cost-effective missile systems, artillery production and key supply chains.
The Drone Deal will bring together Ukraine’s battlefield-tested drone expertise and Europe’s industrial capacity. It will focus on joint ventures between Ukrainian and European companies, targeted technology transfers and investment in dual-use sectors in Ukraine.
“Ukraine is part of Europe’s future and also of Europe’s security. By bringing Ukraine closer to our common defence innovation ecosystem and by launching the Drone Deal, we are turning solidarity into concrete action. This is about helping Ukraine defend itself today, while also strengthening Europe’s technological edge, industrial capacity and readiness for tomorrow. Crucially, this is a two-way street: Europe gains invaluable, real-world operational insights and battle-tested innovation from Ukraine, accelerating our own defence capabilities in ways peacetime development never could. Our message is clear: we stand with Ukraine for as long as it takes, and we work together to build a stronger, more capable European defence.” said Henna Virkkunen, Executive Vice-President for Tech Sovereignty, Security and Democracy.
The first meeting of the Drone Deal’s 18 founding members is scheduled to take place in Brussels in September. The European participants include ORQA, Indra Group, Fincantieri, WB Electronics/WB Group, Destinus, Delair, RSI Europe, TERMA and Quantum Systems.
The selected Ukrainian members include Skyfall Industries, Greentech Harvest, Tencore, Deviro, Vyriy Industry, ATHLON AVIA, TAF Industries, UFORCE and F-Drones. The Commission said the initiative will support the development and production of next-generation drones and counter-drone systems.
The latest €1 billion disbursement is the second payment under the first €6 billion tranche of the Ukraine Support Loan dedicated to drone procurement. It follows a €3.2 billion instalment under the dedicated Macro-Financial Assistance programme on 25 June and a €3.9 billion first payment for drone procurement on 30 June.
The Commission has also approved a €10 billion disbursement plan to finance additional drones, missiles and fighter aircraft. It said the plan underlines the EU’s long-term commitment to Ukraine’s defence and to a stronger, more integrated European defence industrial base.
BraveTechEU, the joint EU-Ukraine initiative to accelerate military technology for Ukraine’s defence industry, also moved to its next phase. Six companies were selected to advance promising defence technologies: Soraccel, EdgeX Robotics, Smaesh, Kova Labs, Tempterno Defence and Rannon.
Those solutions will now be tested in conditions reflecting the war theatre in Ukraine. The Commission said the process is intended to speed the development and deployment of technologies responding to real battlefield needs.
“The battlefields of Ukraine have turned into a laboratory for modern warfare and Ukrainian innovators are the best of the best. That is why joint defence research, development and production with Ukraine is simply the smartest way to strengthen Europe’s defence posture. Along with EU funding and collective work in areas like air defence, drone and counter-drone technologies, companies also need space to engage with each other, and that is what we facilitate year on year.” said Kaja Kallas, High Representative for Foreign Affairs and Security Policy/Vice-President of the European Commission.
Ukraine has also been fully associated with the European Defence Fund and the European Defence Industry Programme. This allows Ukrainian and EU companies to form consortia and participate together in collaborative defence research and development projects supported by the fund.
The European Defence Fund has a budget of €7.3 billion for 2021-2027 and supports the development of advanced defence capabilities. The Commission said Ukraine’s participation will strengthen cooperation across the European defence industry.
Von der Leyen announced the initiatives during her 11th visit to Kyiv since the start of Russia’s full-scale invasion. The Commission said the visit focused on increasing defence cooperation, protecting Ukraine’s skies from Russian drone and missile attacks, and scaling production of critical capabilities.
The Ukraine Support Loan was established by Regulation (EU) 2026/467 and provides for up to €90 billion in support to Ukraine. For 2026, the Council has approved up to €45 billion, including €16.7 billion in budget support and €28.3 billion for Ukraine’s defence industrial capacities.
Since the start of Russia’s war of aggression, the EU and its member states have provided €216.7 billion in overall support to Ukraine and Ukrainians. That figure includes €3.8 billion from the proceeds of immobilised Russian assets, according to the Commission.
Source: European Commission (press release).
