EU grants a rare waiver for Chinese drone parts — only the first €5.9 billion tranche
TL;DR
The EU let Ukraine use its first €5.9bn tranche for specified Chinese drone parts, not the full €60bn.
The EU has allowed Ukraine to use money from the first defense-loan tranche, worth about €5.9 billion, to buy specified Chinese-made drone components. The Financial Times reported the decision, citing two people familiar with it. The first tranche is entirely allocated to drones, but the permission does not authorize purchases of complete Chinese drones and does not cover the full €60 billion weapons-procurement envelope.
EU rules require the money to be spent mainly on products from the bloc, Ukraine, or approved partners such as Canada. Components from other sources generally cannot exceed 35% of an individual contract's value. When eligible countries cannot supply a comparable product quickly enough or in sufficient quantities, Kyiv may seek a derogation from Brussels. Ukraine obtained the waiver for this first tranche through that mechanism.
Euromaidan Press reported that the relevant Chinese-supplied inputs included motors, flight-controller chips, and batteries. European output is insufficient for the rate at which frontline drone warfare consumes components. The reports did not disclose suppliers, a definitive parts list, contract volumes, or prices. Ukrainian officials said drones account for about 80% of Russian battlefield casualties; that figure is Ukraine's estimate.
The EU said China was a “key enabler” of Russia's war and has sanctioned entities supporting Russia's military-industrial system. Under the reported waiver, specified Chinese parts can be purchased from the first €5.9 billion. The remaining €54.1 billion did not receive the same exemption through this decision.
via Euromaidan Press / Financial Times / RBC-Ukraine
EU rules require the money to be spent mainly on products from the bloc, Ukraine, or approved partners such as Canada. Components from other sources generally cannot exceed 35% of an individual contract's value. When eligible countries cannot supply a comparable product quickly enough or in sufficient quantities, Kyiv may seek a derogation from Brussels. Ukraine obtained the waiver for this first tranche through that mechanism.
Euromaidan Press reported that the relevant Chinese-supplied inputs included motors, flight-controller chips, and batteries. European output is insufficient for the rate at which frontline drone warfare consumes components. The reports did not disclose suppliers, a definitive parts list, contract volumes, or prices. Ukrainian officials said drones account for about 80% of Russian battlefield casualties; that figure is Ukraine's estimate.
The EU said China was a “key enabler” of Russia's war and has sanctioned entities supporting Russia's military-industrial system. Under the reported waiver, specified Chinese parts can be purchased from the first €5.9 billion. The remaining €54.1 billion did not receive the same exemption through this decision.
via Euromaidan Press / Financial Times / RBC-Ukraine
