Ukraine will be able to purchase Chinese components for drones with European money — Financial Times
Ukraine has received permission to use part of the European Union’s defense loan funds to purchase Chinese components for drones.
Ukraine has received permission to use part of the European Union’s defense loan funds to purchase Chinese components for drones.
Ukraine has received permission to use part of the European Union’s defense loan funds to purchase Chinese components for drones.
This was reported by the Financial Times, citing sources familiar with the decision.
According to the publication, Kyiv has received the right to use part of the first tranche of the EU defense loan to purchase Chinese-made components — this is an exception worth about €6 billion within the framework of the general support program Ukraine Support Loan, under which €60 billion is provided for armaments. This is the first official exception to the general rules for financing this program.
The permit to purchase Chinese parts is valid precisely in the event that European analogues are not available — that is, the EU recognizes that it cannot yet fully provide the Ukrainian defense-industrial complex with the necessary parts on its own.
The FT notes that the decision exposes a problem within the European defense industry itself: despite the EU’s strategic desire to reduce dependence on Chinese supply chains, Ukraine’s urgent military needs forced it to resort to this regulatory exception. The situation also has geopolitical implications — Chinese components are also an integral part of Russian military production, so financing the purchase of such parts with EU funds creates a kind of paradox: the same supply chains can indirectly work for both sides of the conflict.
In total, the Ukraine Support Loan provides €30 billion in budget support and €60 billion for defense, including investments in the Ukrainian defense-industrial complex. This month, the EU has already transferred to Ukraine the first tranche of approximately €4.4 billion specifically for the purchase of drones — this is part of a wider package of €28.3 billion planned to be disbursed this year for drones, ammunition, missiles and air defense systems. Before transferring funds, the European Commission checks the procurement contracts submitted by Ukraine to ensure compliance with the financing conditions agreed with EU member states.