Ukraine can now use European Union (EU) defense loan funds to purchase Chinese drone parts.
The Financial Times reported on July 15, citing two sources familiar with the matter, that the EU has granted an exception allowing some of the first tranche of defense loans to Ukraine to be used for buying Chinese drone components.
This support amounts to approximately €5.9 billion, part of a total of €60 billion allocated for defense procurement in Ukraine.
According to EU loan regulations, defense products purchased with these funds must generally be sourced from the EU single market or approved partner countries like Ukraine and Canada. Parts produced in non-approved countries cannot exceed 35% of the contract value.
However, if Ukraine cannot quickly secure sufficient quantities of necessary products from eligible countries, it can request an exception from the EU Commission.
Ukraine has successfully requested an exception for the first €5.9 billion defense loan, allowing it to purchase certain Chinese components that are not sufficiently produced in Europe, according to sources.
This decision highlights a significant gap in the supply chain for drone parts, even as the EU seeks to link support for Ukraine to the purchase of European weapons to bolster the regional defense industry.
While Ukraine has rapidly developed its domestic defense industry during the war, the demand for drones, which have become a key weapon on the battlefield, exceeds the production capabilities of both Ukraine and its allies. Ukrainian authorities report that approximately 80% of Russian military casualties on the battlefield are caused by drone attacks.
The Financial Times noted that while the EU criticizes China as a key supplier to the Russian military industry and a major supporter of the war, it also acknowledges Ukraine's dependence on Chinese components for its defense industry.
* This article has been translated by AI.
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