On 16 July 2026, the European Commission and Ukraine signed a new defence industrial partnership, launched the EU–Ukraine Drone Deal, and disbursed a further €1 billion for drone procurement under the €90 billion Ukraine Support Loan. The initiatives aim to integrate European and Ukrainian defence industries, accelerate joint production of drones and counter-drone systems, and expand cooperation to anti-ballistic missiles by 2028. President Ursula von der Leyen, in Kyiv for her 11th visit since the full-scale invasion, said the partnership removes barriers and aligns standards from defence procurement to intellectual property protection, enabling joint ventures and harnessing shared industrial strength for common security.
The partnership builds on existing bilateral drone agreements between Ukraine and EU Member States, providing a single EU–Ukraine framework to coordinate their implementation. The agreement targets joint production of drones and counter-drone systems by end of 2026, scaling up battle-proven capabilities to counter low- to mid-range drones and missiles, with systems potentially stocked outside Ukraine. It also aims for joint production of anti-ballistic missiles by 2028 to address air defence gaps, while continuing artillery production and supply chain cooperation. The Drone Deal brings together Europe's industrial capacity and Ukraine's battlefield expertise through joint ventures, with 18 founding members including ORQA, Indra Group, Fincantieri, and Ukrainian firms like Skyfall Industries and Tencore; the first meeting is scheduled in Brussels in September.
The €1 billion disbursement is the second payment under the first €6 billion tranche of the Ukraine Support Loan dedicated to drones, following a €3.9 billion payment on 30 June and a €3.2 billion instalment on 25 June. The Commission has also approved a €10 billion disbursement plan for additional drones, missiles, and fighter aircraft. The BraveTech EU initiative advanced to its next phase, selecting six companies—Soraccel, EdgeX Robotics, Smaesh, Kova Labs, Tempterno Defence, and Rannon—for testing under war theatre conditions. Ukraine has been fully associated to the European Defence Fund (€7.3 billion for 2021–2027) and the European Defence Industry Programme, enabling joint consortia for collaborative defence R&D.
The partnership integrates Ukraine's defence economy by removing barriers and accelerating standard alignment, benefiting EU and Ukrainian defence companies through joint ventures and technology transfers. It provides long-term predictability for investment, scaling up production of cost-effective missile systems and drones. The initiatives strengthen Europe's defence readiness while supporting Ukraine's immediate needs, with the EU committing €216.7 billion overall since the invasion. The Drone Deal's joint ventures combine Ukraine's operational insights with European manufacturing scale, though the partnership's success depends on sustained political will and industrial coordination across 18 founding members and future participants.