EU Capitals to Assess Defence Industry Capacity for Ukraine’s €90 Billion Loan

EU member states will assess their defence industrial capacity to meet Ukraine’s needs through 2027, following Hungary’s lifting of its veto on a €90 billion EU loan. Defence ministers meeting in Brussels will discuss support for Ukraine and review capability building as Kyiv receives the first tranche.

The European Commission has begun mapping what the bloc can offer, but fewer than half of member states have responded to inquiries from Defence Commissioner Andrius Kubilius and diplomatic representative Kaja Kallas. Ukraine will share its defence needs with the Commission, prioritizing EU-made weapons, but can also use derogations to buy weapons from outside the EU.

Kyiv is set to receive the first €6 billion by June for drone procurement, including those with components made outside the bloc or Ukraine. Subsequent packages will focus on ammunition, air defence, and drones. The EU and UK are negotiating London’s participation in the loan, allowing Ukraine to purchase equipment from the UK, which signed a security partnership with the EU last year.

Micael Johansson, President of the Aerospace, Security and Defence Industries Association of Europe (ASD) and CEO of SAAB, will present on ramping up Europe’s air defence production. Air defence is considered Ukraine’s most critical capability. The French and German defence ministers will not attend Tuesday’s council.