The European Union's €90 billion loan to Ukraine is poised to commence in mid-June, with a significant portion aimed at bolstering Ukraine's defense capabilities amid ongoing conflict with Russia. Ukrainian President Volodymyr Zelenskyy has indicated that about €60 billion will be allocated for military enhancements, including arms production and procurement of necessary weapons. However, the specifics of the spending remain unclear, with the Ukrainian Ministry of Defence not providing details on how the funds will be utilized. The EU has established a three-tiered approach to ensure that the funds are spent on European products, although exceptions may apply in emergencies. The first tranche of €5.9 billion is set to support the production of drones, with expectations of acquiring around 3 million units. Despite calls for European defense procurement, challenges persist as the continent's defense industry struggles to meet the urgent demands of Ukraine, particularly for advanced weaponry like air defense systems. The situation underscores the need for a more agile and responsive European defense sector as threats from Russia continue to escalate.