EU Allows Ukraine to Use Defense Funds for Chinese Drone Parts

The European Union has granted Ukraine an exemption from its 35% cap on non-approved components to buy Chinese drone parts using a €5.9 billion tranche of a €60 billion loan.

• The EU approved the exemption for Ukraine to purchase Chinese-made drone components not sufficiently available in Europe or among approved partners.
• Under EU rules, non-approved components are normally limited to 35% of defense contract value; the exemption waives that limit for Ukraine's drone purchases.
• Ukrainian officials stated that drones cause approximately 80% of Russian casualties on the battlefield.
• The United Kingdom this week joined the EU program as a partner by signing a security partnership.