EU and Ukraine Sign Landmark Agreement to Integrate Drone and Counter-Drone Industrial Capabilities and Procurement

EU and Ukraine Sign Landmark Agreement to Integrate Drone and Counter-Drone Industrial Capabilities and Procurement

The European Commission and Ukraine have formally signed a new Defence Industrial Partnership agreement, marking a significant step forward in the integration of European and Ukrainian defence industries. Under the agreement, both parties will deepen cooperation in the research, development, and manufacturing of drones and counter-UAS (C-UAS) systems. The Commission also announced the disbursement of an additional €1 billion under the €90 billion Ukraine Support Loan framework, specifically to support Ukraine's drone capability development.

European Commission President Ursula von der Leyen stated: "Our Defence Industrial Partnership integrates Ukraine's defence economy just as we integrate each other's markets — removing barriers as fast as possible, aligning standards, and driving closer cooperation and joint ventures between our defence industries, from defence procurement to intellectual property protection. We are harnessing our shared industrial strength to protect our shared security."

Joint Drone Production Targeted by End-2026

Under the agreement, the EU and Ukraine have agreed to facilitate joint production of drones and counter-drone systems between Ukraine and EU member states by the end of 2026. The deal aims to rapidly scale up the production and deployment of battle-tested counter-drone and counter-missile capabilities, while providing long-term predictability to encourage stronger investment and expanded defence industrial capacity on both sides.

The Commission noted: "This cooperation is aimed at defending against low-to-medium range drones and missiles, deploying at scale battle-proven drone systems that can be stockpiled outside Ukraine, and providing the predictability needed by both sides' defence industrial bases to decisively increase investment and production."

Anti-Ballistic Missile Co-Production Planned by 2028

Building on this foundation, the EU and Ukraine plan to further extend their defence industrial cooperation to include joint production of anti-ballistic missile systems by 2028, addressing critical gaps in air defence capability.

The new partnership will deepen integration between European and Ukrainian defence industries by removing barriers to cooperation and accelerating standards alignment across key areas including defence procurement and intellectual property protection, enabling companies on both sides to collaborate more effectively in support of Europe's collective security.

EU–Ukraine Drone Deal: Combining Industrial Capacity and Battlefield Experience

The Commission described the EU–Ukraine Drone Deal as follows: "The EU–Ukraine Drone Deal will bring together Europe's industrial capacity and Ukraine's extensive experience in drone innovation, structured around joint ventures between Ukrainian and European companies. It will combine Ukraine's battle-tested capabilities with Europe's industrial strength and manufacturing scale, support targeted technology transfers and investment in dual-use sectors across Ukraine, accelerate the development and production of next-generation drone and counter-drone systems, and ensure Ukraine has the capabilities it needs today while strengthening Europe's defence readiness for the future."

BraveTech EU Advances to Next Phase

BraveTech EU — a joint EU–Ukraine initiative to rapidly advance military technology for Ukraine's defence industry — has entered its next phase, with six companies selected to advance promising defence technologies: Soraccel, EdgeX Robotics, Smaesh, Kova Labs, Tempterno Defence, and Rannon.

In the next phase of the programme, the solutions developed by these six companies will be tested under conditions simulating the Ukrainian battlefield environment, helping to accelerate the development and deployment of technologies capable of meeting real-world operational requirements.

Ukraine Formally Joins EDF and EDIP

Ukraine has formally joined the European Defence Fund (EDF) and the European Defence Industry Programme (EDIP), enabling Ukrainian and EU companies to form consortia and participate in cooperative defence research and development projects supported by the fund. The EDF carries a budget of €7.3 billion for 2021–2027 and focuses on supporting the development of cutting-edge defence capabilities while strengthening cooperation within Europe's defence industry.

For more information, see the European Commission official press release.

Image credit: Shutterstock

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