EU allows Ukraine to use defence loan for Chinese drone components

The European Union has allowed Ukraine to use part of a defence loan to purchase Chinese drone components, highlighting Europe's continued dependence on Beijing for key military supplies, people familiar with the decision told the Financial Times. 

The exemption applies to part of a €6 billion defence funding tranche, the first allocation from a broader €60 billion EU support package for Ukraine's defence procurement.

Under EU rules, defence purchases financed by the bloc are generally required to come from the EU, Ukraine or approved partner countries. However, the regulations allow exemptions when eligible suppliers cannot provide the necessary products quickly enough or in sufficient quantities.

According to the sources, Ukraine secured the exemption for the €5.9 billion tranche dedicated to drone procurement, enabling it to buy certain Chinese-made components that are not readily available from European suppliers.

The decision underscores the challenges facing Europe's defence industry as it seeks to expand domestic production while supporting Ukraine's war effort. Drones have become a central weapon in the conflict, with Ukrainian officials saying they account for about 80% of Russian battlefield casualties.

By Sabina Mammadli