Europe will frontload €6 billion in credit, drawn from profits on frozen Russian assets, to support the production of drones for Ukraine, European Commission President Ursula von der Leyen has announced.

Source: European Pravda

Details: Von der Leyen made the statement during her annual State of the European Union address in the European Parliament.

She noted that more than two-thirds of Russian equipment losses have been caused by Ukraine’s use of drones.

“That is not just an edge on the battlefield. It is a reminder of the power of human ingenuity in our open societies,” she said.

However, according to von der Leyen, Russia is catching up quickly with Iranian-made Shahed-type drones, benefiting from industrial-scale mass production.

“Ingenuity helped to open a door for Ukraine’s defence. But raw industrial [power] might, on the other side, threaten to sweep it closed,” she warned.

Von der Leyen stated that the EU can leverage its own industrial capabilities to support Ukraine in this drone warfare.

"We can help transform Ukrainian ingenuity into battlefield advantage – and into joint industrialisation. This is why I can also announce that Europe will frontload €6 billion from the ERA loan and enter into a Drone Alliance with Ukraine.

Ukraine has the ingenuity. What it needs now is scale. And together, we can provide it: so that Ukraine keeps its edge, and Europe strengthens its own," she said.

Background:

Von der Leyen has also emphasised the urgent need to develop a new solution for funding military aid to Ukraine based on frozen Russian assets.In 2024, the G7 agreed to jointly provide Ukraine with a US$50 billion loan backed by Russian assets. Although this aid will formally be a credit, it will be repaid using proceeds from the frozen assets. The EU is expected to contribute €18.1 billion under this mechanism.

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