Strategic use of drone funding could really support Ukraine’s war effort

A recent opinion piece by Bloomberg has urged European leaders to allocate drone-related military aid to Ukrainian manufacturers more directly and strategically, as Russia escalates its use of airstrikes and drone warfare in the ongoing conflict.

The editorial argues that while recent funding initiatives—such as the European Commission’s proposed €6 billion package—are significant, their effectiveness will depend on how the money is spent.

Bloomberg's commentary follows a notable uptick in Russian aggression, including a nearly 50% increase in airstrikes on Ukraine in the month after Russian President Vladimir Putin’s visit to Alaska to meet his US counterpart. Russia has also been sending drones and fighter planes across NATO borders, prompting calls for bolstered defences, including the establishment of a "drone wall" on NATO’s eastern frontier.

The European Commission’s President Ursula von der Leyen recently announced a plan to provide an additional €6 billion in support to Ukrainian drone production.

According to Bloomberg, this is a "wise recognition of the need", but the editorial stresses that Ukraine’s advantage lies in the rapid adaptability and cost-effectiveness of its domestic drone production—an advantage that could be diluted if funds are redirected to European manufacturers.

Drones costing less than $500 can disable assets worth millions, the article notes, highlighting how Ukrainian troops provide near real-time feedback to manufacturers, allowing for rapid upgrades to devices and software to counter Russian tactics.

The piece credits Ukraine with building a formidable drone manufacturing base, with around 500 private companies reportedly producing 200,000 units monthly as of early 2025. The Ukrainian Ministry of Defence aims to procure 4.5 million FPV drones this year, more than double last year’s target, and says total production could reach 10 million annually with sufficient funding.

However, Western support has not yet met this scale, Bloomberg argues. A 20-nation drone coalition, co-led by the UK and Latvia, has pledged €2.75 billion for 1 million drones in 2025, but much of that funding still flows to European manufacturers.

Yet much of that money flows to European manufacturers, which delays deliveries and interrupts the frontline feedback loop that is Ukraine’s unique advantage.

One model highlighted in the article is Denmark’s approach. Denmark has been channeling around €830 million annually from frozen Russian assets directly to small Ukrainian drone producers and has also established a co-production facility that could later serve Danish forces. Bloomberg points out that while co-production has strategic advantages, such as protection from Russian strikes and integration into NATO supply chains, it also risks losing Ukraine’s edge in rapid feedback and adaptation due to longer communication lines.

Some mix of such strategies makes sense for the new initiative, Bloomberg writes. First and foremost, Europe should scale direct funding of Ukrainian factories to exploit their speed and low costs.

The piece also backs Ukraine’s decision to lift its informal ban on drone exports, allowing manufacturers to expand sales and reduce per-unit production costs.

Bloomberg concludes that while drones alone will not win the war, they remain the most cost-effective tool in countering Russian advances, especially when used in tandem with conventional weaponry and trained personnel.

Europe should fund them fast — and wisely, the opinion piece urges.

By Sabina Mammadli