Ukraine will be allowed to spend money from the EU’s defence loan on Chinese components for drones.
Financial Times reports that this highlights Europe’s dependence on Beijing for critical parts as the bloc seeks to build up its own defence industry.
According to two sources familiar with the decision, Kyiv secured an exemption allowing part of a €6 billion tranche to be used to purchase drone components from China. This money is the first disbursement under a broader lending programme to support Ukraine, under which €60 billion is earmarked for defence procurement.
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The decision underscores the gaps that remain in the EU’s domestic defence production — despite efforts to strengthen Europe’s industrial base by tying aid to Ukraine to procurement on the continent.
The exemption also clearly highlights China’s role in supplying products to both sides of the war.
“While the EU accuses Beijing of being a ‘key enabler of Russia’s war against Ukraine’ as a major supplier to Moscow’s military-industrial complex, it acknowledges that Ukraine’s defence industry also depends on Chinese components,” FT notes.
The newspaper adds that Ukraine has built one of Europe’s most innovative defence sectors, and Ukrainian manufacturers have outpaced traditional European arms companies in several areas. Suppliers across the continent are trying to meet Kyiv’s needs. However, Kyiv’s consumption of drones — which have become the dominant weapon on the battlefield — still exceeds Ukraine’s and its allies’ capacity to produce certain drone components.
Under the terms of the EU loan, defence products purchased with the bloc’s funds must predominantly come from the single market, Ukraine, or approved partners such as Canada.
Other allies may qualify to take part in the programme if they sign security agreements with the EU, contribute to the scheme, and provide substantial support to Ukraine. The United Kingdom joined the scheme on Monday.
For suppliers outside these approved categories, no more than 35% of a contract may consist of components from other countries. The regulation states that arms procurement must not run counter to the EU’s security and defence interests.
But the rules also provide for an exemption. If similar products cannot be sourced from eligible countries quickly enough or in the quantities Ukraine needs, Kyiv may ask Brussels for permission to buy them elsewhere.
“Ukraine requested and received an exemption for the first defence tranche of €5.9 billion, which is intended for the procurement of drones. This allowed Kyiv to buy certain Chinese components that are not sufficiently available in Europe, sources said,” Financial Times explained.
- In February, the European Parliament backed providing Ukraine with a €90 billion loan in 2026–2027. Of that, €60 billion will be directed to defence needs.