The European Union and Ukraine signed a “drone deal” in Kyiv on Wednesday, July 15, 2026, aimed at combining Ukraine’s hard-won battlefield experience with Europe’s industrial capacity to sharply increase drone production. European Commission President Ursula von der Leyen announced the agreement during a ceremony marking Ukraine’s Statehood Day on St. Michael’s Square.
“This deal will bring together Ukrainian ingenuity and Europe’s industrial scale,” von der Leyen said. Europe, she added, can offer “huge technological and industrial capacity” and “safe and secure production sites,” but lacks the combat-tested expertise Ukraine has built over more than four years of war.
First drone pact covering the whole EU
Ukraine has already signed drone agreements with individual countries, including three more at the NATO summit in Ankara the previous week, which brought the total to nine. The new deal is the first designed to cover governments and companies across all 27 EU member states.
One key feature allows drones to be built and stored on EU territory rather than in Ukraine, keeping production out of reach of Russian strikes. Storage will be short-term, about two to three months, because the technology changes so quickly. After that, the drones will be sent to Ukraine or to interested member states, particularly on the EU’s eastern flank.
The Commission will work with 19 founding partners, including EU-based companies Indra Group, Fincantieri and Quantum Systems and Ukrainian firm Skyfall Industries. Von der Leyen said the initiative will cut red tape and set common standards to make joint ventures between Ukrainian and European companies easier.
Funding and the road to anti-ballistic missiles
The money will come from the EU’s €90 billion support loan for Ukraine and roughly €10 billion still available under the SAFE defense program. On the day of the signing, the Commission released an additional €1 billion from the loan specifically for drone purchases.
The drone deal is part of a broader defense-industrial partnership, set out in a letter of intent signed by von der Leyen and Zelenskyy. Joint production of drones and anti-drone systems is planned by the end of 2026, with cooperation expanding to anti-ballistic missiles by 2028 and later to artillery and other capabilities. “Our defense-industrial partnership is integrating Ukraine’s defense economy just as we integrate our markets,” von der Leyen said.
“We are making 10 million drones a year”
Zelenskyy said Ukraine’s drone industry has grown from limited expertise at the start of the invasion into one of the most advanced in the world. “We are making 10 million drones a year – 10 million. And it will be 20 million,” he said, adding that Ukraine had “fundamentally changed the battlefield.” He also said Ukraine would help build Europe’s anti-ballistic defenses by “integrating all European anti-ballistic capabilities.”
Drones have helped Ukraine make up for manpower shortages and carry out long-range strikes on Russian oil refineries that have contributed to fuel shortages inside Russia. Von der Leyen said the “incursions and alerts” seen in many EU countries show why Europe and Ukraine must face these threats together.
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