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Budget · Allied financing

EU releases €658 million for Ukraine’s defense procurement

The European Commission says most of the payment will buy equipment from Ukrainian companies.

The European Commission disbursed €658 million to Ukraine for defense procurement under the Ukraine Support Loan.1–2 Most of the payment will purchase equipment from Ukrainian companies, the Commission said.1

The majority of the defence funding will be used to procure equipment from Ukrainian companies

Ukraine Support Loan

disbursed€658 millionactual

€658 million under the defence leg of the Loan.

procurementdrones, missiles, radarsplanned

The defence funding will support procurement of drones, missiles, radars, electronic warfare systems and air defence ammunition.

European Commission

Sources
TGOs tgos.io

The funding is intended for drones, missiles, radars, electronic warfare systems and air defense ammunition.1

Earlier defense payments included €3.9 billion on June 30. That payment went toward a tranche of around €6 billion dedicated to drone procurement.3 A further €3.3 billion payment on Sept. 18 covered drones and missiles.4

The latest defense disbursement accompanied €3.7 billion in budget support, Ukraine’s second macro-financial assistance installment for 2026.2 Ukraine met all 12 policy conditions required for that budget payment.1

The payment brings disbursements under the loan’s defense leg to €16.4 billion. Another €11.9 billion is available under the loan for the rest of 2026 to support Ukraine’s defense industrial capacity, with release subject to the required conditions.1

Sources (4)
  1. European Commission: Commission disburses €4.36 billion to Ukraine under the €90 billion Ukraine Support Loan ec.europa.eu
  2. European Commission (DG ECFIN): Commission disburses €4.36 billion to Ukraine under the €90 billion Ukraine Support Loan ec.europa.eu
  3. European Commission: Ukraine Support Loan defence-industry-space.ec.europa.eu
  4. European Commission: Commission disburses €3.3 billion in defence funding to Ukraine (Sept. 18, 2026) defence-industry-space.ec.europa.eu
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Budget · Uncrewed systems

Canada proposes C$2.3 billion for its Defence Drone Initiative

A portion of the proposed funding would come from money already provisioned in Canada's fiscal framework, the budget says.

Canada's budget, released Nov. 5, proposes C$2.3 billion on a cash basis for the Department of National Defence's Defence Drone Initiative.1–2 The proposal covers five years starting in 2027-28.2

Budget 2026 proposes $2.3 billion

for the Defence Drone Initiative

Department of National Defence$2.3 billionrequested

over five years, starting in 2027-28, on a cash basis

fiscal frameworkA portion of fundingplanned

would be sourced from funding already provisioned in the fiscal framework

Source: Government of Canada, Budget 2026, Chapter 5. As of November 5, 2026.

Sources
TGOs tgos.io

A portion of the funding would come from money already provisioned in Canada's fiscal framework. The proposed funding would support an existing procurement effort: the budget reports that the initiative's first contract was awarded in 50 days.2

The initiative was announced July 23, 2026, and is co-led by the Defence Investment Agency. It is intended to supply uncrewed and counter-uncrewed capabilities to the Canadian Armed Forces and Canadian Coast Guard. The budget says it provides access to nearly 400 trusted Canadian suppliers and supports cooperation with allies and partners such as Ukraine.2

The funding is intended to accelerate the discovery, acquisition and deployment of uncrewed and counter-uncrewed capabilities. The initiative's marketplace is meant to provide a pathway for Canadian technologies from concept to operational testing and, where they meet defence requirements, into production.2

Sources (2)
  1. Government of Canada releases Budget 2026: Masters of our destiny, Department of Finance Canada, Nov. 5, 2026 www.canada.ca
  2. Budget 2026, Chapter 5: A safe and sovereign Canada budget.canada.ca
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Budget · Light attack

A two-ship formation of A-29 Super Tucanos fly over Kabul, Afghanistan during a mission on April 28, 2016.
Archive photograph · A two-ship formation of A-29 Super Tucanos fly over Kabul, Afghanistan during a mission on April 28, 2016. Staff Sgt. Larry Reid Jr. / DVIDS Taken 2016-04-28. public-domain; reuse terms. The appearance of U.S. Department of War (DoW) visual information does not imply or constitute DoW endorsement.

Air Force divests its A-29 fleet, Breaking Defense reports

Breaking Defense reports the Air Force plans to store its three Super Tucanos with SNC after the aircraft did not meet test pilot school needs.

The Air Force has divested its three A-29 Super Tucanos at Edwards Air Force Base, the service’s only examples of the Embraer-made turboprop, Breaking Defense reported.1

The aircraft are not expected to return to flight for Air Force use

three A-29 Super Tucanos

SNCplans to sole-source a contractplanned

the service plans to sole-source a contract with SNC to store the aircraft

storage contracta single base year and two option yearsplanned

the storage contract would have a single base year and two option years

Reported by Breaking Defense, Nov. 3, 2026

Sources
TGOs tgos.io

An Edwards spokesperson told the outlet that the aircraft had been thoroughly evaluated but did not meet the intended use for the Air Force Test Pilot School.1

Air Force Special Operations Command originally bought the aircraft, then relinquished them after mission requirements changed, the outlet reported, citing a 2024 Air Force release. The test pilot school subsequently took them to assess whether they could meet its test needs.1

An Oct. 29 Air Force notice outlined plans for a sole-source contract with SNC to store the aircraft. The planned contract would have one base year and two option years. The notice said the aircraft were not expected to return to flight for Air Force use.1

Embraer assembles A-29s in Jacksonville, Florida, where SNC installs mission equipment for U.S. and specific foreign military sales customers. Embraer officials have said that the Jacksonville line could be at risk without sufficient demand; the company also operates a separate Super Tucano production facility in Brazil.1

Officials are exploring future options for a sustainable spin and mission systems aircraft for the test pilot school, the Edwards spokesperson told Breaking Defense.1

Sources (1)
  1. Air Force divests its few A-29s, explores ‘future options’, Breaking Defense, Nov. 3, 2026 breakingdefense.com
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