Ukraine has been allowed to use funds received from the EU defense loan to purchase components for Chinese drones, according to the Financial Times citing two sources.
According to the publication's sources, Kyiv has been permitted to use part of the first tranche amounting to 6 billion euros for this purpose.
The Financial Times noted that this decision highlights existing gaps in the EU's defense production sector, as well as China's role in supplying both sides of the conflict.
According to the loan conditions, defense products purchased with EU funds must primarily be supplied from the single European market, from Ukraine, or from EU-approved partner countries.
Other allies may also participate if they sign a security partnership agreement with the EU.
However, an exception is provided if the necessary products cannot be acquired quickly or in sufficient volumes from the specified countries.
Ukraine signed and ratified the agreement for the Ukraine Support Loan credit program at the end of May. This is a credit instrument from the EU worth up to 90 billion euros, intended for 2026-2027. It is expected that 60 billion euros of this amount will be allocated for Ukraine's defense needs.
