Ukraine to buy Chinese drone parts with EU loans — FT
Photo: Ukraine will be able to purchase Chinese drone components using EU loan funds (Getty Images)
Ukraine has been granted permission to use part of the defense loan from the European Union to purchase Chinese components for drones, Financial Times reports.
According to the agency’s sources, Ukraine has been granted the right to use part of the first tranche of the EU defense loan, amounting to approximately 6 billion euros, to purchase Chinese-made components.
These funds are part of a large-scale EU program that allocates 60 billion euros for defense procurement for Ukraine.
In general, the program’s rules stipulate that products purchased with European funds must originate primarily from EU countries, Ukraine, or other approved partners.
However, the regulations include an exception: if the necessary goods cannot be obtained quickly in sufficient quantities, Ukraine may apply to Brussels for special permission to purchase them from other countries. Kyiv has taken advantage of precisely this mechanism.
As the FT notes, the decision demonstrates that the European defense industry is not yet able to fully supply the necessary components for drone production.
Despite actively ramping up arms production, certain critically important components still have to be purchased from China.
At the same time, this decision is controversial, as the EU has repeatedly accused Beijing of supporting the Russian military-industrial complex through the supply of dual-use products. Nevertheless, Chinese components remain vital for Ukrainian drone production as well.
Dependence on Chinese components
China remains a key player in global supply chains, and for the Ukrainian defense industry in particular.
At the same time, a gradual geographical shift has also been observed in recent years. A portion of procurement is shifting to the European Union, the United States, Taiwan, and South Korea.
In addition, Ukraine’s production of components for the defense industry is growing. At the same time, the most advanced technologies remain dependent on imports for now.
According to rough estimates, last year alone, the share of Chinese components in Ukrainian drones fell to approximately 38%.
However, industry experts note that the situation varies significantly depending on the specific product and company. Some Ukrainian manufacturers have already achieved a localization rate of up to 90%, while certain products still rely heavily on supplies from abroad.
