PARIS: European countries have funnelled billions of dollars of military aid to Ukraine since United States funding ended, with 2026 contributions helping boost its booming drone sector, Germany's Kiel Institute said on Thursday (Jun 4).

In the first four months of the year, 12 per cent of European military aid to Ukraine was allocated to drone production, according to the Kiel Institute, which has tracked military, financial, and humanitarian aid to Ukraine since the Russian invasion on February 24, 2022.

Of the 12.33 billion euros (US$14.3 billion) in military aid allocated by European nations from January to April, 1.5 billion euros was earmarked for drone production, more than for all of 2025 (1.24 billion euros).

Aid funds allocated to drones tripled between 2022 and 2026, with the trend accelerating in March and April. Britain announced on Apr 15 that it will provide 120,000 drones.

Germany and Norway have each provided 500 million euros, and the Netherlands 250 million euros, to help Ukraine acquire the weapons, which have become essential in fighting off Russian strikes.

Ukraine boasts that it is now the world's leading drone specialist. And a growing number of European countries, such as Finland, Denmark, and Britain, are making drones for the conflict with Ukrainian companies, which are relocating part of their manufacturing to allied nations.

"European donors are now entering drone financing and production on a large scale," said Christophe Trebesch, research director at the Kiel Institute.

"As a result, support for Ukraine is increasingly becoming a two-way exchange: financial aid flows to Ukraine, while technological spillovers flow back to Europe," he added.

Ukraine's drone experience has led to defence agreements with several countries, notably Gulf states targeted during the Middle East war by the same types of Iranian-made drones that Ukraine has learned to counter.