EU-Ukraine Defense Industry Partnership and Drone Agreement

Ukraine and the European Union (EU) have signed a new agreement to institutionalize cooperation in the defense industry during the ongoing Russia-Ukraine war. Announced at a ceremony in Kyiv on 15 July 2026 by European Commission President Ursula von der Leyen and Ukrainian President Volodymyr Zelenskyy, the EU-Ukraine Defense Industry Partnership has established a new cooperation mechanism widely referred to in public discourse as the “Drone Agreement.” This initiative aims to accelerate joint production, technology transfer, and defense industry integration by combining Ukraine’s unmanned aerial vehicle (UAV) technologies developed during the war with the EU’s industrial and manufacturing capacity.

The agreement elevates strategic cooperation between the EU and Ukraine on unmanned aerial vehicles and counter-drone systems, which have become decisive on the battlefield amid Russia’s attacks on Ukraine. The European Commission has stated that the partnership is not limited to supporting Ukraine’s current defense capabilities but will also strengthen Europe’s future defense architecture.

European Commission President Ursula von der Leyen, during her speech at the ceremony in Kyiv marking Ukraine’s State Day, noted that this was her 11th visit to Kyiv since the start of the Russia-Ukraine war and expressed satisfaction at launching a new defense industry partnership with Ukraine. Von der Leyen emphasized that the core of this cooperation lies in UAV technology, stating, “Today’s agreement is our own drone agreement.”^【1】

Von der Leyen recalled that Ukraine has recently signed similar drone agreements with various countries, primarily EU member states, underscoring that this reflects international interest in the operational experience gained on the battlefield. She highlighted that Ukraine’s accumulated operational knowledge during the war will make significant contributions to European security and stressed the strategic importance of the EU leveraging this experience.

The signed partnership agreement aims to achieve a more comprehensive integration of European and Ukrainian defense industries. It foresees the removal of barriers between the parties in areas such as defense procurement, joint production processes, protection of intellectual property rights, harmonization of technical standards, and the establishment of joint ventures. The goal is to enable Ukrainian and European defense companies to collaborate more easily on shared projects.

Under the agreement, companies from Ukraine and EU member states are planned to accelerate joint production of unmanned aerial vehicles and counter-drone systems by the end of 2026. The parties aim to increase production of systems proven effective in combat to ensure their rapid deployment and secure long-term investment support for production capacity. Furthermore, the partnership is expected to expand in coming years to include joint production of defense systems against ballistic missiles. The European Commission has announced that work toward joint ballistic missile production is planned to begin by 2028.

The EU-Ukraine Drone Agreement seeks to unite the EU’s manufacturing capacity with Ukraine’s technical expertise and operational experience gained on the battlefield under a single framework. Under this framework, joint ventures will be established between Ukrainian and European companies, technology transfers will be supported, and investments in dual-use technologies will be increased. The primary objective is to accelerate the development of next-generation unmanned aerial vehicles and counter-drone systems while enhancing Europe’s defense preparedness.

Von der Leyen noted that Ukraine possesses significant expertise not only in drone production but also in radar systems, sensor technologies, ground control stations, and supply chain management, and stressed that Europe must integrate this experience with its own industrial capacity.^【2】 Von der Leyen emphasized that while Europe has a strong technological infrastructure, it lacks operational experience tested under combat conditions, and stated that Ukraine’s expertise in this area holds strategic value for European security.^【3】

Alongside the announcement of the agreement, the European Commission revealed a new payment of €1 billion to strengthen Ukraine’s unmanned aerial vehicle capacity. This funding constitutes the second tranche of the €90 billion Ukraine Support Loan program, which is dedicated exclusively to drone procurement. The new financial support, following earlier payments made in June, aims to sustain Ukraine’s defense industry production and meet its battlefield needs.

The European Commission also announced approval of a further €10 billion in funding for future deliveries of additional drones, missiles, and combat aircraft. This plan is described as a key component of the EU’s long-term strategy to strengthen its defense industry.

The new partnership extends beyond production activities to include Ukraine’s fuller integration into European defense projects. Under this framework, Ukraine has been granted full participation in the European Defence Fund (EDF) and the European Defence Industry Programme (EDIP), opening the way for Ukrainian companies to participate in joint research and development projects with firms in EU member states. Ukraine’s participation in joint projects under the EDF, which has a budget of €7.3 billion for the period 2021–2027, is a key objective.^【4】

As part of the partnership’s initial implementation steps, the inaugural meeting of founding members—including leading European defense companies and Ukrainian technology firms—is planned for September 2026 in Brussels. This meeting aims to define technical details of joint production projects and accelerate efforts to develop new defense technologies.