On 15 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 strengthen air defence capabilities.
The partnership, announced during European Commission President Ursula von der Leyen's 11th visit to Kyiv, provides a single EU–Ukraine framework to coordinate and 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, with a focus on scaling up battle-proven capabilities to counter low- to mid-range drones and missiles. The cooperation will expand to joint production of anti-ballistic missiles by 2028, addressing critical air defence gaps, while also prioritising cost-effective missile systems and strengthening artillery production and supply chains. The partnership aims to remove barriers to cooperation and align standards in defence procurement and intellectual property protection.
The EU–Ukraine Drone Deal brings together Europe's industrial capacity and Ukraine's battlefield-tested drone innovation through joint ventures between Ukrainian and European companies. The first meeting of 18 founding members is scheduled for September 2026 in Brussels. European founding members include ORQA d.o.o., Indra Group, Fincantieri, WB Electronics/WB Group, Destinus, Delair, RSI Europe, TERMA A/S, and Quantum Systems. Ukrainian members include LLC Skyfall Industries, LLC Greentech Harvest, LLC Tencore, LLC Deviro, LLC Vyriy Industry, Scientific production Company ‘ATHLON AVIA' LLC, LLC TEHAVTOFART PIVDEN" (TAF Industries), UFORCE, and F-Drones.
The €1 billion disbursement for drone procurement 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 2026 and a €3.2 billion instalment under the Macro-Financial Assistance programme on 25 June 2026. The Commission has also approved a €10 billion disbursement plan to finance additional drones, missiles, and fighter aircraft.
Under the BraveTechEU initiative, six companies were selected to advance promising defence technologies: Soraccel, EdgeX Robotics, Smaesh, Kova Labs, Tempterno Defence, and Rannon. These solutions will undergo testing under conditions reflecting the war theatre in Ukraine. Additionally, Ukraine has been fully associated to the European Defence Fund (EDF) and the European Defence Industry Programme (EDIP), enabling Ukrainian and EU companies to collaborate on defence research and development projects supported by the EDF's €7.3 billion budget for 2021–2027.
The partnership and Drone Deal are expected to significantly impact EU and Ukrainian defence industries by fostering joint ventures, technology transfers, and investment. EU defence companies gain access to battlefield-tested innovations, while Ukrainian firms benefit from EU funding and manufacturing scale. The initiatives may also accelerate standardisation and reduce barriers, benefiting both sides' defence industrial bases. However, the focus on joint production could raise concerns about intellectual property protection and competition among EU member states' defence industries. The €1 billion disbursement directly supports Ukraine's drone capabilities, while the broader €90 billion loan underscores long-term EU commitment. The integration of Ukraine into EU defence programmes may also shift some R&D priorities toward cost-effective, rapidly deployable systems, potentially impacting traditional defence contractors.
Institutional follow-up includes the first Drone Deal founding members meeting in September 2026, continued disbursements under the Ukraine Support Loan, and further alignment of defence standards. The partnership builds on the Ukraine Support Loan Regulation adopted in February 2026 and the Council Implementing Decision of 23 April 2026, which provided for up to €45 billion in support for 2026, including €28.3 billion for defence industrial capacities.