The European Union and Ukraine signed a landmark drone deal on 15 July 2026 in Kyiv, establishing the first EU-wide defense-industrial partnership covering all 27 member states to jointly scale drone production by combining Ukraine’s battlefield expertise with Europe’s industrial capacity [1][2][12]. The agreement enables Ukrainian drones to be built and stored on EU soil before deployment, mitigating risks from Russian strikes [1][14]. Immediate funding includes €1 billion disbursed from the €90 billion Ukraine Support Loan, with an additional €10 billion allocated from the SAFE defense programme, of which approximately €6 billion targets drones [2][3][10]. Ukraine currently produces 10 million drones annually, aiming to double output to 20 million, while nine European drone companies will meet Ukrainian producers in Brussels in September 2026 to finalize collaboration details, targeting joint production of drones and counter-UAS systems by end of 2026 [1][3][14].