The latest
The European Union has allowed Ukraine to use part of its defence loan to purchase Chinese drone components after Kyiv sought an exemption because some parts are not available in Europe in sufficient quantities or quickly enough.
The exemption applies to the first €5.9bn defence tranche, which is dedicated to drone procurement, under a broader €60bn programme for Ukrainian defence purchases.
Details
- Funding rules: The loan generally requires defence purchases to come from the EU single market, Ukraine, or approved partners including Canada.
- Exemption: The rules allow purchases outside those markets when comparable products cannot be sourced quickly enough or in the quantities Ukraine requires.
- China’s role: The decision highlights both sides’ dependence on Chinese components, despite the EU’s accusation that Beijing supports Russia’s military-industrial base.
- Production gap: Ukraine has built an innovative domestic defence sector, but demand for some drone components still exceeds its and its allies’ production capacity.
What’s next
The European Commission is seeking to reduce the need for such exemptions by expanding defence-component production within Europe. It has not disclosed which Chinese components Kyiv will buy or when procurement will begin.
