Germany Unveils €1.35 Billion Ukraine Package as Merz Arrives in Kyiv to Finalize Drone Deal

Germany is preparing to provide Ukraine with €1 billion in new military assistance and another €350 million to repair damaged energy infrastructure, as Chancellor Friedrich Merz arrived in Kyiv for talks on expanding bilateral defense cooperation.

According to Reuters on October 4, German government officials said Merz is expected to announce the funding package during his visit, while Germany and Ukraine are also set to finalize an agreement covering the joint production of several types of drones.

“I travelled to Kyiv today because Ukraine needs all our support in the coming weeks,” Merz said. “If Russia is not stopped, sooner or later its war machine will turn against us.”

Reuters reported that Merz traveled to Kyiv alongside German Economy Minister Katherina Reiche and a delegation that includes executives from Siemens Energy, Hensoldt, Diehl Defence, Quantum Systems, and other companies. The German chancellor is also expected to discuss reforms requested by Ukraine’s European Union partners, including anti-corruption measures.

A major part of the visit is expected to focus on expanding Ukrainian-German defense production. Ukrainian President Volodymyr Zelenskyy said earlier this week, following a phone call with Merz, that the two countries were preparing to finalize an agreement covering drones, missiles, and related software, Reuters reported.

One of the priorities is the rapid production of interceptor drones designed to counter high-speed jet-powered attack drones. German defense company Quantum Systems has tested technology for this role.

The planned cooperation extends beyond drone interceptors. According to Reuters, Germany and Ukraine are also working on the joint development and production of weapons with ranges exceeding 1,000 kilometers, giving Ukraine additional domestically and jointly produced options for long-range strikes against military targets inside Russia.

Merz arrived as Russia continued large-scale attacks on Kyiv. Air raid alerts and explosions were reported across the Ukrainian capital on October 4, while one Russian strike damaged the Northern Bridge across the Dnipro River and nearby infrastructure, according to Kyiv Mayor Vitali Klitschko.

Germany has significantly expanded its military support for Ukraine since Russia launched its full-scale invasion in February 2022.

The German government says it has provided or committed around €57.6 billion in bilateral military assistance for Ukraine, while Berlin has also financed energy repairs, air defense capabilities, and other infrastructure support.

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