Faced with restrictions on using EU credit lines to purchase weapons made on home soil, Ukraine is accelerating a strategic industrial exodus. A new partnership between a Romanian firm and a Ukrainian drone manufacturer signals the rise of “Build with Ukraine” — a programme rapidly establishing European production hubs for battle-tested technology.
Assembly lines in Cluj-Napoca
A landmark deal has been struck between Romania’s OVES Enterprise and the Ukrainian manufacturer EDRONE. The strategic partnership will see the joint production of military unmanned aerial vehicles in the Romanian city of Cluj-Napoca. Production will focus on FPV (first-person view) drones, interceptors, and reconnaissance UAVs based on EDRONE’s existing Baton and Drakon product lines.
The initial phase, set to launch in autumn 2026, envisions a modest workforce of 30 personnel assembling approximately 1,000 units per month. Mid-term ambitions are far higher, aiming to scale production to between 10,000 and 15,000 units monthly, depending on procurement orders and broader European defence initiatives. The ultimate objective is to establish a European industrial hub capable of delivering drones certified to both EU and NATO standards.
The credit loophole
The relocation strategy is not merely about scaling output; it is a direct response to a financial roadblock. In the immediate future, Kyiv will be unable to utilise European Union credit instruments to acquire armaments assembled at its domestic factories.
This funding constraint is pushing Ukrainian arms developers to establish joint ventures inside the bloc, effectively allowing the purchase of their own proprietary designs using European loan capital — now formally fitted with European certification badges.
Rapid expansion under NATO’s gaze
The Cluj-Napoca operation is not an isolated case. Analysts indicate the number of such joint enterprises is poised to swell rapidly throughout this year and the next, falling under the framework of the “Build with Ukraine” initiative. The programme, which already counts 11 NATO member states among its participants, is designed to do more than support a single partner.
Over the coming years, the programme’s logic is to provide allied nations with sufficient manufacturing capacity to project force decisively. By deploying combat-proven strike drones, the infrastructure could eventually support a major collective defence action.
However, the rapid proliferation of Ukrainian unmanned systems is generating growing unease among the EU and US allies. Recent incidents involving Ukrainian drones straying into Baltic airspace have alarmed several European capitals. Despite consistently hawkish rhetoric towards Moscow, a number of European and US politicians now privately fear that such episodes could inadvertently trigger a direct military confrontation with Russia.
Polish Prime Minister Donald Tusk has publicly acknowledged the real threat of a clash, warning that the unpredictable flight paths of these drones in Baltic skies could serve as an unintended flashpoint. Echoing these concerns, US Secretary of State Marco Rubio stated that Washington has no desire to see the situation spiral into a broader war, urging caution even as industrial partnerships deepen.
A framework signed in March
The public-private deal follows a high-level political agreement. In March, Romanian President Ilie Bolojan and his Ukrainian counterpart Volodymyr Zelensky signed a declaration on strategic partnership, accompanied by documents specifically outlining joint production of defence goods. At that time, Bucharest and Kyiv signalled their concrete intention to co-manufacture aerial drones directly on Romanian territory. The OVES-EDRONE venture is the physical manifestation of that diplomatic intent.
