KYIV — The European Union and Ukraine signed an agreement to merge Ukrainian expertise in unmanned warfare with European industrial capacity. The goal of the agreement is to ramp up production of drone and counter-drone systems.

European Commission President Ursula von der Leyen announced the agreement in Kyiv on Wednesday. She was in the Ukrainian capital to mark Ukraine's Statehood Day.

Under the framework of the deal, joint ventures will be established between selected Ukrainian and European defense companies. Ukraine currently produces 10 million drones per year and aims to increase annual drone production to 20 million with the help of partners.

Von der Leyen said that together the EU and Ukraine can work on joint production, making all components of drone systems work, and providing both defense industrial bases with the impetus to step up investments and production. She stated that the initiative would draw on the respective strengths of both sides to accelerate manufacturing capabilities.

She noted that Europe has significant technological and industrial capacity and secure production sites that can help scale up output. These facilities offer a stable environment for expanding production.

Von der Leyen said Ukraine has battle-tested knowledge and expertise forged through ongoing conflict, which European manufacturers currently lack. She emphasized that combining European industrial capacity with Ukrainian operational experience is key.

She added that together, the EU and Ukraine can work on joint production, integrating operational experience with established industrial infrastructure.

Participating EU member-state firms include ORQA from Croatia, Indra Group from Spain, Fincantieri from Italy, WB Group from Poland, Destinus from the Netherlands, Delair from France, Terma from Denmark, and Quantum Systems from Germany. These companies represent a cross-section of the European defense and technology sectors.

Participating Ukrainian companies include Skyfall Industries, Greentech Harvest, Tencore, Deviro, Vyriy Industry, Athlon Avia, Tehavtofart Pivden (TAF), UForce, and F-Drones. Most participating Ukrainian companies specialize in first-person-view combat drones.

Fincantieri and UForce will leverage their expertise in naval drones and serve as systems integrators in the maritime domain. This specific partnership shows the agreement's focus on diversifying drone applications beyond land-based operations.

An initial meeting of the 19 founding members is scheduled to take place in Brussels. This gathering will formalize the operational structure of the coalition.

Ukraine has signed a total of nine drone deals with individual countries prior to this multilateral arrangement. These previous agreements laid the groundwork for broader international cooperation in unmanned systems.

According to an anonymous Ukrainian official, Ukrainian and Russian companies often buy parts from the same factories in China. This supply chain overlap presents logistical and strategic considerations for the new production initiatives.