Ukraine may use EU funds for Chinese drone parts

Ukraine is set to use a part of its defense aid funds from the European Union (EU) to acquire drone parts from Chinese companies, the Financial Times reported on Wednesday, citing two people familiar with the matter, AzerNEWS reports.

According to the outlet, the EU allocated a €6 billion defense loan to Ukraine in case of military emergencies and has approved purchases of Chinese components if other alternatives are unavailable.

The alleged decision may prove significant in relations between Russia and China, which have a developed military cooperation and are set to hold joint naval drills later this month.

Despite the EU’s strategic aim of reducing its dependence on Chinese supply chains, immediate military needs appear to have prompted this regulatory exception. The EU has allocated a €6 billion defence loan for urgent military procurements, explicitly permitting the use of these funds for Chinese components where no domestic alternatives are available. This situation highlights a strategic complexity, as Chinese components are also integral to Russian military capabilities.

The procurement appears to emphasise Ukraine’s immediate military needs, suggesting that short-term priorities take precedence over long-term supply chain diversification.

Market behaviour suggests that the news could increase the perceived likelihood of Ukraine strengthening its military capabilities, which could in turn influence the situation regarding Crimea.