This transcript was automatically generated and may contain errors.

Good morning everyone and welcome to today's press conference on the first meeting of the EU-Ukraine drone alliance.

I have the pleasure to have Commissioner Kubilius with us. Commissioner, good morning to everybody. Well, I hear myself. Good.

So really it's We started this morning with a very important step forward, I would call even historical step forward in bringing European Union and Ukraine draw an alliance into reality,

which is a very big step forward in integrating ourselves together to Become much stronger.

We need to learn from Ukraine how to scale up and meet the demand of new technologies when we need it.

Therefore, this first meeting, which brought together 18 founding members, 9 from the European Union side and 9 from the Ukraine's side,

manufacturers, innovators, startups, scale-ups, is really a very important step forward.

They will now work on the agreed activities with a 2nd board meeting planned before the end of the year.

And they are still continuing now to discuss what is the agenda. It's an industry-led initiative with Ukraine.

It's a vehicle for industrial partnership and integration with Ukraine.

And let me remind you that it was launched during the 3rd EU-Ukraine Defense Industryal Forum in Kiev and it is the first step towards the EU-Ukraine drone deal announced by President Ursula von der Leyen on 5 July as part of the EU-Ukraine defense industrial pact.

Together with President Volodymyr Zelensky, European airspace is being tested with repeated drone violations in our airports,

military installations, and critical infrastructure.

That is what we see each day in Ukraine. This threat. Such threat is a daily reality.

The challenge we face is not only the technological edge but also about speed and industrial capacity to deliver together.

We need design cycles in weeks, not months, and countermeasures that keep pace,

and that's why the EU-Ukraine drone alliance is so important because it will address that gap.

We will work first of all to accelerate joint ventures and joint production between EU and Ukrainian companies and implementation of very important.

EDPCIs on drone defense, so-called decoder, and there's the eastern flank watch. Second, we shall develop readiness to scale.

We need production lines that stay warm in quiet periods.

What does it means warmth and quiet period?

It means not producing such big amounts but can be searched within weeks.

Now EU industries are producing around 1.5 million drones per year.

We have to Maciej Russian production capabilities of up to 10 million FPV drones and 130,000 jet powered Shaker drones,

or 1700 ballistic missiles per year.

We need to collaborate with Ukraine in the domain of command and control. Reconnaissance infrastructure for unmanned systems.

Ukraine has a remarkable system in that area, delta.

3rd to identify and to elaborate the ways to overcome the challenges of supply chains,

components for the production of drones, electric vehicles, magnet materials,

production of explosives, production of chips, and third.

We need to learn how to have an ecosystem for drone warfare similar to Ukraine where designers,

production, procurement, operation of drones experienced from the front line is integrated into that ecosystem.

And 5th, we need to gain speed in research, development, and procurement, reduce time from requirement to prototype, from years.

Brech EU already helps companies to test defense technologies against operational scenarios and battlefield conditions drawn from the war in Ukraine.

So that is what is about this very important drone alliance created both by the companies from Ukraine and from the European Union. I will share today also some.

News about our decisions on Ukraine support loan.

Today the Commission officially also approved 6.1 billion for Ukraine air defense drones and missiles from Ukraine support loan.

This is really a very important step forward.

We worked a lot with member states and Ukraine to this goal.

The decision officially enables Ukraine to procure PAC-3 missiles for Patriots.

Funded under the Ukraine Support Loan, the package includes 5 derogations from standard eligibility conditions, 3 for Ukrainian-made drones and components exceeding cost thresholds,

and 2 for US-made equipment, in particular Pak3 missiles, including we as a NATO coordinated portal mechanism.

Ukrainian military edge depends on the rapid availability of critical products in the required quantities and within very short time frames.

Accelerating EU deliveries through desk stocking, reprioritizing orders, and ramping up the production remains crucial.

And with today's decision,

we managed to achieve such an outcome that all the €28.3 billion.

Which were allocated for this year to finance Ukraine defense from Ukraine support loan now are decided.

The Commission is currently processing with 4.7 billion payment requests. Which follows the 8.3 billion already disbursed. So disbursement is moving ahead. Before releasing funds.

The Commission is reviewing the contracts to ensure compliance with Ukraine support loan conditions and the procurement terms agreed with member states.

Also, just a few words on safe loans which are related more with European defense,

but also it covers in some way. The needs of Ukraine. We are implementing SAF without delay.

As you know, 18 member states requested loans.

Some of them already received the 1st 15% payments based on their operational plans.

Finally, we have a decision from the Italian government on the final requested amount more than €8 billion.

Now we are waiting for their plan for review, operational plan for review.

Hungary is the last country to present their final request for the from.

We hear that the decision is almost done and we will be soon informed,

and then we shall recalculate how much loans from SafeF are not requested and we'll do a second round of allocations. Thank you very much, Commissioner.

We now have time to take some questions. Vitalie, let's start with you.

There is a microphone you have to take the microphone, like in the press room. Council. Permission of.

Commissioner, following the incident in Leipzig and in Moldova, this incursion where the plane of President Zelensky was put at risk,

what the EU could do to protect civil aviation in the EU and maybe you have some information about this incident with President Zelensky and have some reaction on some details. Thank you. Well, two sides.

One is really that We need to acknowledge that Russian provocations,

deliberate or not deliberate, with drones, with sabotage, are increasing.

And that makes all the civilian life also in EU member states more threatened and more dangerous. That is what we see very clearly.

The question is how to stop such an activity of Russia,

of course needs broader discussion, broader approach.

We are doing everything in order to stop this war against Ukraine. And we shall continue to do that.

I will not elaborate on the Leipzig incident that was very much covered by media and we know the German government reaction,

very strong reaction.

We, we support such a reaction on President Zelensky incident, so-called Moldova incident.

President Zelensky said this was not maybe direct aggression against President Plain, but nevertheless it's very clear that the situation is, as I said,

is becoming more and more dangerous also for civilian aviation in neighboring countries,

and it demands from us to be even more. Proactive in building our defense capabilities.

That is what drone alliance is about in order to be ready to react, whatever provocations can come.

While this is not the first incident when the leaders of the countries or leaders of different institutions are under some kind of threat.

I remember myself traveling with Commission President Ursula von der Leyen perhaps last year.

Through all the eastern flank countries and in Bulgaria,

our pilots said that they were facing really quite a trouble with jamming of navigation signals,

which is also very dangerous for civilian aviation. Good morning Alice Kaudia for Euractiv. I have two questions if I may. The first one on the support loan.

So you just, announced 6.1 billion has been agreed.

Is it possible to know how much money is going to the US because you said there are two derogations or if that's easier,

how much money is actually going to EU producers given that they are in total five derogations in this package?

And then my second question is on the drone alliance.

In, in July, the president said that 10 billion of unspent safe money could go to the drone deal with Ukraine.

How would that work given that countries take out the loan normally? Thank you.

Well, the first question on, I will not be maybe so precise on this specific.

Decision which was very important,

especially when we are talking about the ability for Ukraine to finance. Procurement of patrol systems, PAC 3 systems.

Discussion was among member states quite intensive and you know that.

We asked the American administration to go forward with some of their more clear obligations,

so they sent us a letter which was considered enough for us to make that derogation in general.

We are able to provide since we now.

We finished this year's job with all the So-called weapons schedules for €28.3 billion so we can look into the numbers,

how those money, what contracts are signed,

where the money is going to which countries.

If I am correct now from my memory, we can check and we can send.

I was speaking recently about that to Ukraine to Rammstein Group.

We know exactly what we were speaking about support Ukraine.

If I am correct, 60% of money was going to Ukraine.

Around 30% to companies if we are taking into account the companies,

around 30% to European companies, and around 10% to third countries.

But if we are if we are going more deeply,

if we are looking into components production and since with support of the European Union.

More and more components which were coming from third countries now are changed into European components of the numbers are a little bit different.

If I am correct again, 35% if to calculate through that. Granular, you know.

From where the companies are coming and where the money is going, so around 35% of contracts are going to Ukraine.

The same amount is going to European companies and around 30% is going to third countries. Thank you, Commissioner Stefan. Yes. OK. Is it which one?

Stephanie at your table on the PC 3 interceptors,

can you tell us how fast the delivery will happen because we know that the US has some limitations concerning production.

So if this is coming, if these interceptors are coming in a few years or in a few months, it makes a big difference. Thank you.

Definitely it's very clear, and the Ukrainians, as we understand, they will.

Put all the efforts now to have those interceptors as much as possible before winter.

There are also different options which are possible to implement,

including that as we understand, Ukrainians have quite a clear.

Vision or agreements with different suppliers with different member states,

how PC 3 PCI or PC-3 missiles will be delivered in 2027.

So the question now is,

Is it possible to To exchange.

Deliveries which will come in 2027 with the member states who have some some PAC-3 missiles in their stockpiles to give those stockpiles now to give those missiles from stockpiles now to Ukraine and then to get from Ukrainian agreements for 2027.

As we understand, NATO is also very intensively working on that.

And I hope that that will be really realized in an effective way. Yes, please. Is that working now? Yeah, works, yes.

Thank you so much Zoriana Stepanenko, Radio for Europe's Ukrainian service.

Commissioner, my question concerns Freya project, so-called joint project between the European Union and Ukraine,

which might lead to Your own anti-ballistic system.

So we've heard from President Zelensky in the summer that probably within 12 months we will see the first results.

So do you find this timeline feasible actually and at what stage this project now? And the second question if I may.

Russian intelligence is spreading the information that Europe is allegedly forcing Ukraine to mobilize women due to the shortage of manpower.

Have you heard anything about that, or this is just yet another example of Russian propaganda? This is very important.

Anti-ballistic common project joint project with Ukrainian leadership and Europeans participating in that development.

I hope that it will go really successfully.

For the time being we do not have any specific information, but what is important, and I was repeating today during During today's meeting of drone alliances that with the instruments which we now have,

not only Ukraine support loan but also for example Ukraine support instrument from Egyp program,

we can look into possibilities to have some kind of financial assistance to some of those joint projects like Fre like another project it's against. As a company, it's very complicated title.

I don't remember, so those projects really are very crucial and,

and we can look really how we can support them to become a reality very soon.

Now, I, I, I have no, information and, and I cannot, you know.

I would say it would be strange if Europe will try to convince Ukrainians how to make mobilization and including mobilization of women.

This is again, I am not surprised that that comes from the Kremlin. Thank you very much. This closes this press conference.

See you at midday, and thank you very much, Commissioner. Thanks a lot.