European Commission President Ursula von der Leyen and Ukrainian President Volodymyr Zelenskyy signed a comprehensive UAV joint production and capacity expansion agreement in Kyiv on July 15, 2026. This initiative combines the EU's industrial infrastructure with advanced UAV technology and combat experience that Ukraine has developed over more than four years of conflict. Zelenskyy stated at the State Day ceremony in Saint Michael's Square that annual UAV production of 10 million units would be increased to 20 million.

The agreement's financing structure is built on a solid foundation. Resources will be provided from the EU's 90 billion euro support credit for Ukraine and approximately 10 billion euros in funds awaiting use in the SAFE program. Von der Leyen emphasized that Europe possesses significant technological and industrial capacity that can be mobilized, but the knowledge and experience that Ukraine has developed under wartime conditions does not exist in Europe, making the combination of forces essential.

The agreement's most strategically significant aspect is that UAVs will be produced and stored in EU countries rather than directly in Ukraine to protect them from Russian attacks. Due to rapidly evolving technological dynamics, system storage duration will be limited to a short timeframe of two to three months. Produced UAVs will be rapidly dispatched to Ukraine or directed to member states, particularly in the EU's eastern flank, seeking to strengthen their defense capacity.

Technological knowledge sharing, previously conducted bilaterally with only some EU countries, is now being expanded to all 27 EU member states through the new agreement. This comprehensive cooperation deepens the integration of the European defense industry ecosystem while enabling Ukraine's combat-proven UAV technology to merge with Europe's industrial capacity. The agreement is regarded as a long-term investment in European defense independence and strategic autonomy.

The European Commission aims to expand cooperation beyond unmanned systems, with a second phase encompassing joint production of ballistic missiles and ballistic missile defense systems. Von der Leyen emphasized Europe's commitment to defense integration with the statement: "Now is the time to invest in Ukraine, in Europe, in our common security and our common future." This step marks a significant turning point in European defense industry strategy.