European Commission President Ursula von der Leyen announced the agreement during her 11th visit to Kyiv since the start of Russia's full-scale invasion, calling it a deal that combines 'Ukrainian ingenuity and Europe's industrial scale.'

According to von der Leyen, Ukraine has accumulated 'truly unique' knowledge about combat drones and defensive systems during the war, and the agreement aims to put those technologies to work for both sides. The deal covers not only drone production but also sensors, radar systems, ground stations, and supply chains for components.

'Ukraine has in many ways turned from a buyer into a supplier of security for Europe,' von der Leyen said.

The European Commission's statement did not disclose specific funding amounts, timelines, or a list of joint projects. Military analyst David Sharp told The Insider that the agreement's significance will only become clear once the numbers are known: 'It's one thing — two billion for specific goals, and quite another — 200 million. That's a fundamental difference.'

Sharp noted that European countries and companies are already actively cooperating with Ukraine in this area. 'Much of what allows Ukraine today to carry out successful strikes at long and medium range appeared thanks to cooperation with European and American partners,' he said, adding that joint developments could eventually be adopted by EU member states.

Alongside the agreement, the European Commission transferred €10 billion to Ukraine for the purchase of drones, missiles, and fighter jets. The funds come from a previously agreed €90 billion EU loan, though officials did not designate this tranche as the budget for the 'drone deal.'

Before signing the agreement with the EU, Ukraine had concluded nine bilateral 'Drone Deals.' The first were ten-year agreements with Saudi Arabia, the United Arab Emirates, and Qatar, followed by deals with Azerbaijan, Lithuania, and Latvia. On July 7, at a NATO summit in Ankara, Ukraine signed agreements with Estonia, the Netherlands, and Denmark. Negotiations with Germany, Norway, Italy, Sweden, Finland, Canada, and the United States were ongoing at the time.

Von der Leyen made the announcement during a ceremony where Ukrainian President Volodymyr Zelensky awarded her Ukraine's first Order of Europe — 'for outstanding personal merits in supporting Ukraine's strategic course toward full membership in the EU.'