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Ukraine’s Defence Ministry and EU Discuss Defence Funding, Drone Production and Procurement

During a visit by a joint mission of the European Commission and the European External Action Service, the sides discussed funding for Ukraine’s defence needs for 2027.

Ukraine’s Defence Ministry and EU Discuss Defence Funding, Drone Production and Procurement
Photo: Міноборони

Ukraine’s Ministry of Defence held a series of meetings with representatives of the European Commission’s Directorate-General for Defence Industry and Space (DG DEFIS) and the European External Action Service (EEAS), who arrived in Ukraine as part of a joint mission.

This was reported by Ukraine’s Ministry of Defence.

The European delegation was led by DG DEFIS Deputy Director-General Gerald Reuter. The sides discussed verification mechanisms and oversight of the use of funds from the Ukraine Support Loan, cooperation within the EU–Ukraine Defence Industrial Pact, and the needs of Ukraine’s defence sector.

Deputy Minister of Defence for European Integration Serhii Boiev presented to partners Ukraine’s funding needs for the defence sector for 2027 and priorities for the use of international support.

Particular attention was paid to unmanned systems, including support for the production of Ukrainian FPV drones, as well as middle-strike and deep-strike capabilities.

Deputy Minister of Defence Hanna Hvozdiar presented the potential of the Ukrainian defence-industrial complex and identified production priorities within the Ukraine Support Loan.

Participants also discussed implementation of the EU–Ukraine Defence Industrial Pact, the Drone Deal initiative, the creation of joint ventures, and further integration of Ukraine’s defence-industrial complex into the EU ecosystem.

Transparency, accountability and procurement approaches were discussed with the European delegation by Ukraine’s Deputy Minister of Defence Mstyslav Banik, with the participation of Acting Director of the Defence Procurement Agency DOT Artem Romaniukov and the agency’s team.

The Ministry of Defence’s priorities remain improving legislation in the field of defence procurement, taking into account wartime conditions and EU recommendations, as well as moving to competitive procedures and further shifting tenders onto electronic platforms to minimise the human factor.

"We can see competition increasing, the market expanding, and we are saving significant funds. Some tenders have already been successfully completed, and deliveries to the armed forces have begun. In this way, the Ministry of Defence, together with the Defence Procurement Agency, is creating a simple system with zero tolerance for corruption and shadow schemes, while remaining open to partners," Mstyslav Banik noted.

Artem Romaniukov spoke about the Defence Procurement Agency’s approaches to ensuring transparency and accountability, cooperation with anti-corruption bodies, and the use of a risk-based approach when vetting counterparties.

"It is important to us that international partners have confidence in Ukraine’s defence procurement system. That is why we are strengthening oversight at all stages of procurement, introducing the relevant tools and conducting audits so that our partners can be assured that international support funds are used effectively and transparently," Artem Romaniukov stressed.

The Ukrainian side also noted positive momentum in engaging European business: in 2026, European defence companies have already taken part in competitive procurements announced by the Defence Procurement Agency.

Ukraine Support Loan is one of the key instruments for financing Ukraine’s defence needs and developing cooperation with European partners.

  • Overall, the loan provides for up to €90 billion to support Ukraine in 2026–2027. Of this amount, nearly €60 billion is to be directed to defence needs, and a further €30 billion to budget support.
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