EU Advances Drone Wall Plan, Weighs €140bn Loan for Ukraine

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The European Union is moving forward with plans to build a “drone wall” along its eastern borders in response to repeated Russian airspace incursions. The proposal, backed by 10 central and eastern European states and Ukraine, is seen as a core element of the EU’s defence strategy.

EU defence commissioner Andrius Kubilius stressed the urgency of establishing advanced detection systems — including radars and acoustic sensors — along with the ability to intercept and neutralise drones. The move follows drone violations in Denmark, Poland, and Romania, and a recent incursion of Estonian airspace by Russian fighter jets. Kubilius noted the cost challenge of shooting down low-cost drones with expensive missiles, urging more efficient defence measures.

Alongside military discussions, momentum is building for a €140bn loan to Ukraine based on Russia’s frozen assets in Europe. A leaked European Commission proposal suggests generating an interest-free loan using immobilised Russian central bank reserves, without confiscating the original funds. Profits from these assets are already being redirected to Ukraine, but the new plan would leverage the capital itself while assuming Russia will eventually pay reparations.

German Chancellor Friedrich Merz has endorsed the plan, signalling a shift in Berlin’s stance. While unanimous approval from all 27 EU members is preferred, Merz suggested the bloc may need to bypass potential vetoes from Hungary’s pro-Kremlin government. EU leaders will discuss the drone wall and loan proposal at next week’s Copenhagen summit, aiming for final agreements by the end of October.

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