Ukraine will be able to use funds from a 90-billion loan from the EU to purchase Chinese drone components. The European Commission has officially confirmed a different wording: an exemption from the rules of origin has been granted for drones, provided that a significant proportion of their components come from countries outside the EU, the EEA-EFTA and Ukraine. The decision was taken due to urgent defence needs.
Briefly about the main points
- The European Commission did not name China or any other specific suppliers.
- An exception applies to drones containing more than 35% components originating from countries outside the EU, the EEA-EFTA and Ukraine.
- The derogation was approved due to a lack of available alternatives within the required timeframe.
- The EU has already transferred €3.9 billion to Ukraine for the purchase of drones.
What exactly did the European Commission confirm?
Ukraine has been given the opportunity to purchase Chinese spare parts for drones using funds from an EU loan of up to €90 billion. The article states that European manufacturers are not always able to supply the necessary components at the rate required by the front line.
The European Commission has confirmed the existence of an exemption, although its documents do not specifically mention China. Under the Commission’s decision, the standard threshold of 35% for the value of components originating from countries outside the EU, EEA-EFTA countries and Ukraine may be exceeded for drones.
The exemption does not apply to all defence procurement
Ukraine applied for a derogation on 12 March, explaining that products of standard permissible origin were not available in the required quantities or could not be supplied within a timeframe compatible with the urgency of military requirements. The European Commission approved the request on 1 April following consultations with the relevant expert group and the committee of Member States.
The Commission has described this mechanism as exceptional and strictly limited. It applies only in cases of urgent need, when the Ukrainian and European defence industries are unable to supply the required products in sufficient quantities and on time. This does not constitute a general waiver of the rules of origin for all procurements under the programme.
The first funds have already been received for the purchase of drones
Ukraine Support Loan It covers the period 2026–2027 and provides for up to €90 billion in aid: approximately €60 billion for defence needs and €30 billion for budgetary support. For 2026, the Council of the EU has made funding of up to €45 billion available, including €28.3 billion for Ukraine’s defence and industrial capabilities.
As of 15 July, the EU had reported the transfer of €7.1 billion under this mechanism. Of this amount, €3.9 billion for the procurement of drones was received on 30 June, and €3.2 billion in macro-financial assistance on 25 June. The European Commission is verifying that the contracts submitted for payment comply with the agreed procurements.
Supply chain constraints
The first phase of the programme focuses on drones, whilst in its forthcoming procurement plans, the European Commission anticipates procuring ammunition, missiles and air defence systems. The official justification for the exemption points not to a change in the EU’s general policy, but to a specific production and logistical constraint: there were insufficient alternatives available in the required quantities and within the required timeframes.
The standard rules governing the instrument permit procurement in Ukraine, the EU, EEA-EFTA countries and, under certain conditions, in other third countries. The targeted derogation for drones broadens the scope only where the urgency of the need takes precedence over the standard requirements regarding the origin of components.
