EU and Ukraine forge defence industrial tie-up in Kyiv
The European Union has signed a first-of-its-kind defence partnership with Ukraine to co-produce drones, marking a tangible shift in how Europe is integrating Kyiv's military tech sector into its own industrial base.
Ursula von der Leyen travelled to Kyiv this week to sign an EU-Ukraine defence industrial partnership aimed at building unmanned aerial vehicles. The deal creates joint ventures that merge the bloc's industrial scale with Kyiv's combat-tested expertise. It notably allows drones to be stored on EU soil before deployment.
Funding will be drawn from the military strand of the €90 billion support loan and roughly €10 billion remaining under the SAFE defence programme. The agreement is the first of its kind, with plans to expand cooperation into missile technology.
The focus on drones underscores a strategic shift with direct implications for European energy markets. Ukraine has moved the fighting to the skies, using long-range drones to strike Russian oil refineries thousands of kilometres from the front. This campaign has strained Moscow's war chest and forced Russia to restrict its fuel exports.
"The tide is turning," von der Leyen declared upon arriving at the train station. "Russia may have darkened your skies with smoke. But no one is fooled. No cloud of smoke can hide the reality on the battlefield," she said, standing next to Volodymyr Zelenskyy. "Russia's momentum is weak. Ukraine, on the other hand, continues to resist."
Despite this industrial progress, the ground reality remains dangerous. Russia is exploiting a severe shortage of US-made Patriot interceptors to pummel cities, killing hundreds of civilians in recent weeks. Von der Leyen was rushed to an underground shelter during an alert, later touring a monastery damaged by a Russian strike in June.
The trip also exposed domestic political friction in Kyiv. Protests erupted over the dismissal of Mykhailo Fedorov, the popular defence minister widely credited with pioneering Ukraine's drone warfare.
Accession path clears
Beyond defence manufacturing, the visit highlighted a recalibration in Ukraine's EU accession bid. Following April's Hungarian elections, a blockade by Viktor Orbán has lifted, allowing Ukraine to open its second cluster of negotiations this month. Zelenskyy has dropped his previous demand for full membership by 2027, a timeline von der Leyen had firmly dismissed.
The shift signals a move toward tangible regulatory progress rather than political deadlines. "Our relationship with Europe is now the strongest, most meaningful and most personal than at any other point in our history," Zelenskyy said. "You are preparing for your future as a member state of our Union," von der Leyen replied. "But the truth is, your actions are already shaping the future of our entire continent."
