International

Merz Brings Kyiv Drone Deal And €1.35 Billion Support Package

KYIV, Ukraine – German Chancellor Friedrich Merz arrived in Kyiv on Sunday with a €1.35 billion support package and a planned drone production agreement as Russia increased air attacks across Ukrainian cities.

Merz travelled with Economy and Energy Minister Katherina Reiche and senior executives from Siemens Energy, Hensoldt, Diehl Defence and Quantum Systems. German officials said Berlin will release €1 billion in military assistance and €350 million for repairs across Ukraine’s energy sector.

The visit puts drone warfare, air defence and winter energy security at the centre of German support for Ukraine. Russian forces have expanded missile and jet-powered drone strikes against urban areas and critical infrastructure. Ukraine has answered with attacks against Russian oil refineries and other military-linked targets.

“Ukraine needs all our support in the coming weeks,” Merz said after arriving in Kyiv.

Ukrainian Foreign Minister Andrii Sybiha welcomed the German delegation at the railway station. Sybiha said talks would focus on “strengthening Ukraine, our defense and resilience, and our shared European security.”

The drone agreement carries major military significance. Germany and Ukraine have worked for months on joint production of drones, missiles and related software. The latest talks aim to complete arrangements for several unmanned systems, including interceptors which destroy fast Russian attack drones before those aircraft reach cities, power stations or military facilities.

Quantum Systems already works with Ukrainian manufacturer WIY Drones through Quantum WIY Industries. The venture focuses on the Strila interceptor drone and related air-defence technologies. German and Ukrainian teams also plan long-range weapons with ranges above 1,000 kilometres.

Those projects show how the Russia Ukraine war has changed defence procurement. Ukraine needs large volumes of relatively low-cost unmanned systems, rapid software updates and shorter production cycles. Germany wants access to battlefield experience, manufacturing partnerships and technology relevant to European infrastructure protection.

Merz also arrived with an economic delegation rather than a defence team alone. Siemens Energy brings expertise in power systems while defence companies bring sensors, interceptors and unmanned aircraft. The composition links military support with reconstruction and energy resilience.

Energy security now carries urgent weight. Russian attacks have damaged Ukrainian power generation, heating plants, transmission infrastructure and urban services. The €350 million energy allocation targets repair work as colder months approach. Reliable electricity and heating support civilians while also sustaining factories, rail networks, communications and defence production.

Germany has increased its role as one of Ukraine’s main European military supporters. Berlin has supplied air-defence systems, ammunition and other equipment while funding Ukrainian weapons production. The new package extends this policy toward deeper industrial cooperation.

The arrangement also serves German security priorities. European governments have reported drone incursions, sabotage concerns and other hybrid threats around military sites and critical infrastructure. German officials see Ukrainian battlefield knowledge as relevant to domestic defence planning.

Russia rejects Western military support for Ukraine and describes arms deliveries as steps which prolong the conflict. Moscow’s Foreign Ministry said Russian forces would continue strikes against targets in Ukraine, describing recent operations as retaliation for Ukrainian attacks inside Russia. Moscow also warned foreign nationals and diplomatic personnel against travel to Ukraine.

Ukraine rejects Moscow’s description of its campaign and says Russian strikes increasingly target civilian infrastructure. President Volodymyr Zelenskyy said Ukrainian forces would intensify attacks on Russian oil refineries in response to Russia’s expanding air campaign.

The latest escalation has shifted attention toward air-defence economics. High-cost missiles remain important against ballistic threats, yet mass drone attacks force defenders to seek cheaper interception options. Interceptor drones offer one route. Electronic warfare, jamming, mobile gun teams and layered radar networks form other parts of the defence system.

Germany’s proposed industrial model seeks production on both sides. Ukrainian companies contribute battlefield-tested designs and operational data. German companies contribute financing, industrial capacity, sensors, electronics and access to European supply chains. Joint production also spreads manufacturing risk across several locations.

The visit carries a European Union dimension. Merz plans to raise reforms requested by European partners, including anti-corruption measures. Ukraine continues seeking deeper integration with European institutions while fighting a prolonged war and managing large flows of foreign assistance.

Berlin therefore links military support with governance expectations. Donor governments want stronger procurement controls, financial oversight and institutional reform alongside defence cooperation. Kyiv argues wartime conditions require speed while still accepting reform commitments tied to European integration.

For global defence markets, the German Ukrainian drone partnership deserves close attention. The conflict has accelerated demand for autonomous systems, counter-drone technology, electronic warfare and rapid battlefield manufacturing. Traditional defence companies now compete alongside younger technology firms with shorter design cycles.

The strategic question reaches beyond Ukraine. European governments want larger domestic defence industries after years of reliance on slower procurement models and foreign suppliers. Joint projects with Ukraine give manufacturers access to operational feedback from one of the world’s most drone-intensive wars.

Recent Russian strikes have also hit transport infrastructure around Kyiv, including the Northern Bridge across the Dnipro River. Damage to major crossings complicates civilian movement, logistics and emergency response across a city with millions of residents. Ballistic missiles and jet-powered drones place pressure on air-defence crews because speed and flight profiles reduce reaction time. Ukraine therefore wants interceptor systems close to cities and energy sites, while Germany wants operational lessons for European defence. The visit arrives as both governments prepare for a winter period in which electricity networks, heating systems and transport links remain central military and civilian priorities.

Merz’s Sunday arrival therefore combines immediate aid with a longer industrial strategy. Germany will finance weapons and energy repairs while seeking deeper cooperation in drones, missiles and defence technology.

The coming talks will determine the final structure, production targets and delivery schedules. Ukraine wants faster interceptor output before winter attacks intensify. Germany wants stronger European defence capacity and a clearer industrial return from support spending.