European Commission President Ursula von der Leyen announced an advance allocation of \u20ac6 billion in credit, financed from profits from frozen Russian assets, for the production of drones for Ukraine.<\/p>\n\n\n\n
She made the announcement during her annual State of the European Union speech in the European Parliament.<\/p>\n\n\n\n
Von der Leyen noted that the use of drones by Ukraine accounts for over two-thirds of Russian equipment losses.<\/p>\n\n\n\n
\u201cThis is not just an advantage on the battlefield. It is a reminder of the power of human ingenuity in our open societies,\u201d she said.<\/p>\n\n\n\n
However, she added that Russia is rapidly catching up, supported by Iranian-developed Shahed-type drones, and is leveraging the advantages of industrial mass production.<\/p>\n\n\n\n
\u201cThus, ingenuity has helped open the doors for Ukraine\u2019s defense, but raw industrial power, on the other hand, could threaten to close them,\u201d the Commission President noted.<\/p>\n\n\n\n
She emphasized that the EU can use its industrial capacity to support Ukraine in countering this drone-driven war.<\/p>\n\n\n\n
\u201cWe can help turn Ukrainian ingenuity into battlefield advantage \u2014 and into joint industrialization. That is why I can also announce that Europe will advance \u20ac6 billion from the ERA credit and establish a Drone Alliance with Ukraine,\u201d von der Leyen stated.<\/p>\n\n\n\n
\u201cUkraine has ingenuity. Now it needs scale. Together, we can provide it so that Ukraine maintains its advantage, and Europe strengthens its own,\u201d she added.<\/p>\n\n\n\n
Ursula von der Leyen also stressed the urgent need to develop a new solution for military financing of Ukraine using frozen Russian assets.<\/p>\n\n\n\n
In 2024, the G7 agreed to jointly provide Ukraine with a $50 billion loan using Russian assets: the funds will be formally issued as a loan but repaid from the income generated by frozen Russian assets. The European Union is expected to transfer \u20ac18.1 billion under this mechanism.<\/p>\n\n\n\n