Europe’s future defence alliance Ukraine emerges as the centre of the continent’s arms industry

The signing on July 15 of a letter of intent between Ukraine and the European Union on a strategic defence-industrial partnership marks one of the most significant developments not only for Ukraine’s defence industry but also for the broader European security architecture. It is highly symbolic that the document was signed on the Day of Ukrainian Statehood. In doing so, Kyiv and Brussels sent an unequivocally clear political signal: despite all challenges, their support for Ukrainian statehood remains unwavering.

At the same time, President Volodymyr Zelenskyy described the signed document as the first step toward implementing the large-scale Drone Deal agreement, calling it a historic decision. It is difficult to disagree with that assessment, as this is not merely about expanding military-technical cooperation—it effectively marks the beginning of the creation of a unified European-Ukrainian defence-industrial space.

For her part, President of the European Commission Ursula von der Leyen emphasised that the agreement marks a new level of integration between the defence industries of Ukraine and the European Union. According to the European Commission's plans, joint production of drones and counter-drone systems is expected to be launched by the end of 2026, while the next stage envisages the development and production of advanced missile defence systems by 2028. At the same time, the parties intend to expand the production of artillery systems, strengthen supply chains, and establish joint Ukrainian-European enterprises.

Taken together, all of this confirms that Ukraine has now ceased to be merely a recipient of military assistance and is becoming a full-fledged participant in the European defence-industrial complex.

This change in status is of strategic importance, as over more than four years of full-scale war, Ukraine has gained unique experience in conducting modern warfare, with the Armed Forces of Ukraine being the first in the world to deploy naval drones on a large scale and to take the use of FPV drones to a fundamentally new level, effectively transforming the understanding of modern warfare. Europe now gains access to this invaluable experience, while the Ukrainian side gains access to large-scale European investment, technology, and production capacity. As we can see, this cooperation is beneficial to both sides.

At the same time, Brussels fully understands that the Ukrainian Armed Forces today constitute the first line of defence for the entire European continent, making the development of Ukraine's defence industry a common task for the European Union. This is also evidenced by the fact that, alongside the signing of the agreement, the European Commission announced the allocation of another €1 billion to Kyiv under a major program financing drone production, while also approving a €10 billion package providing for the procurement of drones, missiles, and advanced fighter aircraft.

Thus, Europe is investing in security—not only Ukraine's, but its own as well.

Based on the above, one can arrive at the following conclusion: before our eyes, something that would have been difficult to imagine just a few years ago is taking shape—a completely new model of defence cooperation, in which Ukrainian engineering solutions and combat experience are combined with European investment and industrial capacity. The result is a powerful synergistic effect that will shape the development of the EU's defence-industrial complex for many years to come.

Today, it is already evident that, once the war is over, Ukraine will possess one of the most advanced armed forces in Europe. This will be due not only to the combat experience accumulated by the Armed Forces of Ukraine and the professionalism of its service personnel, but also to its deep integration with the European defence-industrial complex, the development of its own high-tech weapons production, and the expansion of cooperation with states that have consistently supported and continue to support the territorial integrity of the Ukrainian state, including Azerbaijan and Türkiye.