The European Commission (EC) has authorised Ukraine to spend part of its EU loan on the purchase of components for drones made in China, The Financial Times reported, citing its sources.
This is the first tranche of EUR 5.9 billion as part of a EUR 60 billion defence loan. Kiev can use this money to buy weapons, most of which are produced by companies from the EU, Canada or the UK. Other EU allies can join the scheme by signing a partnership agreement with Brussels. The share of companies from other countries should not exceed 35%.
Exceptions to these rules are provided for in cases where the military products needed by Kiev have no equivalents on the approved list of countries or are not produced in sufficient quantities by them. Ukrainian authorities have asked the European Commission to allow part of the €5.9 billion to be spent on purchasing certain components for Chinese-made drones. The European Commission and the Ukrainian Ministry of Defense did not respond to the newspaper’s request for comment.
As the newspaper notes, the EC’s decision highlights the ongoing capacity deficit in the EU’s defense industry, despite efforts to strengthen Europe’s industrial base by increasing arms supplies to Ukraine.