EU allows Kiev to use loan funds to buy Chinese-made drone components — FT
According to the newspaper, the measure concerns the first tranche of 5.9 bln euro under the EU's 60 bln euro defense loan
LONDON, July 15. /TASS/. The European Commission (EC) has allowed Ukraine to use part of an EU loan to purchase Chinese-made drone components, the Financial Times (FT) reported, citing sources.
According to the newspaper, the measure concerns the first tranche of 5.9 bln euro under the EU's 60 bln euro defense loan. Kiev may use these funds to purchase weapons whose production is primarily carried out by companies from the EU, Canada, or the United Kingdom. Other countries allied with the EU may join the mechanism by signing a partnership agreement with Brussels. The share of companies from all other countries must not exceed 35%.
Exceptions to these rules apply if the military equipment required by Kiev has no equivalent among products from the approved countries or if those countries are unable to produce it in sufficient quantities. Ukrainian authorities requested that the EC allow part of the 5.9 bln euro to be used to purchase certain components for Chinese-made drones. The EC and the Ukrainian Defense Ministry did not respond to the newspaper's requests for comment.
According to the FT, the EC's decision underscores the EU defense industry's continuing capacity shortages despite the bloc's efforts to strengthen Europe's industrial base by increasing arms supplies to Ukraine.