The EU has allowed Ukraine to use loan funds to purchase Chinese drone components, according to media reports
15 July 13:57
Ukraine has received permission to use part of the funds from a defense loan from the European Union to purchase Chinese components for drones. This was reported by the Financial Times, according to "Komersant Ukrainian".
According to the publication’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 come primarily from EU countries, Ukraine, or other approved partners.
“However, the regulation contains an exception: if the necessary goods cannot be obtained quickly in sufficient quantities, Ukraine may apply to Brussels for special permission to purchase from other countries. Kyiv has taken advantage of precisely this mechanism,” the publication writes.
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 sourced from China,” the publication writes.
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. However, Chinese components remain essential for Ukrainian drone production as well.
Watch us on YouTube: important topics – without censorship
The publication notes that this decision highlights the gaps that still exist in the EU’s domestic defense production, despite efforts to strengthen Europe’s industrial base by linking aid to Ukraine with procurement on the continent.
“This exception also clearly demonstrates China’s role in supplying both Ukraine and Russia in this full-scale war,” the publication writes.
And while the EU has accused Beijing of being a “key enabler of Russia’s war” against Ukraine as the main supplier to Moscow’s military-industrial complex, it has also acknowledged that Kyiv’s defense industry, too, depends on Chinese components.
Dependence on Chinese Components
It is worth noting that China remains an important supplier of components to the Ukrainian defense industry in particular.
At the same time, a gradual “geographical” shift has 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 is increasing its production of components for the defense sector. However, the most complex 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.
Read us on Telegram: important topics – without censorship
