The European Commission has given final approval to €6.1 billion in funding for Ukraine to produce drones and buy PAC-3 interceptor missiles, EU Defence and Space Commissioner Andrius Kubilius announced.
Kubilius made the announcement at a briefing following the first meeting of the board of the EU-Ukraine Drone Alliance, according to a UNIAN correspondent.
He said the European Commission had officially approved the 6.1 billion euros for drones and air defence missiles for Ukraine from the loan supporting the country, calling it an important step forward achieved through extensive work with member states and Ukraine.
The decision formally allows Ukraine to purchase PAC-3 interceptor missiles for its Patriot air defence systems, Kubilius explained.
Exceptions in the funding package
According to Kubilius, the funding from the Ukraine support loan includes five exceptions for procurement. Three of these relate to investment in Ukrainian drone and component production exceeding certain cost thresholds, while two cover the purchase of US-made equipment, including PAC-3 missiles, partly through the PURL mechanism coordinated with NATO.
Thanks to the decision, all 28.3 billion euros earmarked this year for defence financing from the Ukraine support loan have now been allocated, Kubilius said.
Background on the €90bn loan
The European Commission is a separate institution from NATO, and this financing forms part of a broader two-year, 90 billion euro loan for Ukraine, two thirds of which is earmarked for defence. The full loan is due to be disbursed over 2026 and 2027.
The Commission released the first package of military aid in June, with further payments following. On 30 July, the European Commission transferred 3.47 billion euros to Ukraine, a tranche the Commission said included additional funding for drones, missiles and Gripen fighter jets.
What comes next
The Commission is currently processing a request to approve a further 4.7 billion euros, Kubilius said, describing it as the next stage after the 8.3 billion euros already disbursed. He said payments are continuing.
