EU Announces $7B Drone Alliance With Ukraine

Europe will provide €6 billion ($7 billion) to support Ukraine’s drone production, funded by the interest from immobilized Russian assets, according to European Commission President Ursula von der Leyen on Wednesday.

She said the funding will go directly into a new drone alliance between Europe and Ukraine.

“Before the war, Ukraine had no drones. Today, Ukrainian drones are responsible for over 23% of Russian equipment losses, highlighting the impact of human ingenuity in open societies,” von der Leyen said during the annual State of the EU speech.

Von der Leyen added that Russia has been catching up quickly with Iranian-made Shahed-type drones, benefiting from industrial-scale mass production.

She announced the news soon after 19 Russian drones crossed into Polish airspace – an unprecedented incident for the NATO member bordering Ukraine.

Polish Prime Minister Donald Tusk said some have entered Polish airspace from Belarus, confirming that three drones were shot down and said a fourth may also have been destroyed. 

Ukrainian President Volodymyr Zelensky reported on his Telegram Wednesday morning that eight drones had struck Poland.

Von der Leyen referenced the incident in her speech, calling the incursion “reckless and unprecedented.”

“And just today, we have seen a reckless and unprecedented violation of Poland and Europe’s airspace by more than 10 Russian Shahed drones,” von der Leyen said. “Europe stands in full solidarity with Poland.”

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Von der Leyen said the EU will help Ukraine maintain its military edge while bolstering European security, adding that it can turn Ukrainian ingenuity into battlefield advantages and drive joint industrial development.

EU remains Ukraineʼs biggest supporter

Europe has provided close to €170 billion (almost $199 billion) in military and financial aid to Ukraine since 2022.

The €6 billion ($7 billion) drone initiative adds a new layer to this support, von der Leyen said.

EU member states agreed in May to direct billions in profits from frozen Russian assets toward Ukraine in response to Russia’s full-scale invasion. The funds will help support Ukraine’s military and reconstruction needs.

The EU froze around €200 billion ($232 billion) of Russian central bank assets in 2022. Most of them – about 90% – are held by Belgium-based Euroclear, which settles securities trades.

The latest €1.6 billion ($1.9 billion) announced on Aug. 11 represents interest earned in the first half of 2025 and marks the third such transfer. The first tranche, in July 2024, delivered €1.5 billion (almost $1.8 billion), followed by a second in April 2025.