Ukraine gets EU approval to purchase Chinese drone parts under €6 billion defence fund

Ukraine has been granted permission to purchase Chinese drone components from an EU defence loan, which could amount to €6 billion, according to a report by the Financial Times. This would be the first tranche, which is dedicated to drone procurement, among the total €60 billion earmarked for defence procurement. This is done to “respond as quickly as possible to the most urgent needs that Ukraine has…derogations are possible. These are granted in exceptionally rare cases,” said a spokesperson of the commission as reported by FT.

In general, it is stipulated that the funds are being used to purchase components from Europe, Ukraine or other approved partners. However, if the necessary quantities are not available within the required time, then Ukraine may request to purchase them from other countries. These components include- batteries, engines, flight controllers, and specialised electronics — rather than finished, assembled commercial unmanned aerial vehicles.

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A strategic paradox for the European Union

Europe has repeatedly accused Beijing of being “the key enabler of Russia's war” against Ukraine as a key supplier to Moscow's military industrial complex. This highlights the inability of the EU and US defence industries to match the production needs for drone manufacturing. Ukraine has itself developed an incredibly advanced and innovative defence industry, but it is significantly dependent on China's supply chain of raw materials. The country's defence production has grown from $1 billion before to $35-55 billion. China remains a key player in the global supply chain. Though Ukraine is heavily trying to reduce reliance on Chinese imports, it remains the only option for many key components. EU officials recognise the contradiction of sending European capital to Beijing, which is actively supplying dual-use components like semiconductors and drone engines to Russia, but it becomes necessary to prioritise survival.