FT: Ukraine will be able to buy Chinese components for drones with the help of an EU loan

The European Union has allowed Ukraine to use part of its defense loan (approximately €6 billion) to purchase Chinese components for drones, an exception to general funding rules.

This is reported by the Financial Times, citing sources familiar with the matter.

Under the program, defense products purchased with European money must come primarily from EU countries, Ukraine, or other approved partners, such as Canada. Other allies can apply if they sign a security partnership agreement with the EU, contribute to the scheme, and provide substantial support to Ukraine.

However, these requirements also have an exception: if similar products cannot be obtained from eligible countries quickly enough or in the quantities Ukraine needs, Kyiv can ask Brussels to allow it to buy them elsewhere.

Ukraine received an exemption for the first €5.9 billion defense tranche, which is intended for the purchase of drones. This allowed Ukraine to buy certain Chinese components that are not available in sufficient quantities in Europe.

The day before, it became known that the EU plans to allow Ukraine to purchase British weapons using a €60 billion loan provided for defense purchases. The British government will make a financial contribution only if Ukraine decides to use the loan to purchase military equipment from British companies. The United Kingdom signed this agreement on July 13.

• The EU defense loan is part of a wider €90 billion loan that EU leaders have approved for 2026-2027. Of this amount, €60 billion will go to military aid, the rest to budget support.
• The money allocated for 2026 will be distributed as follows: €28.3 billion for defense, €16.7 billion for budget support. The loan will be repaid with proceeds from frozen Russian assets in European banks.

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