On December 20, 2025, Ukraine and Portugal officially established a partnership for the joint production of maritime drones. The announcement was made during Portuguese Prime Minister Luís Montenegro’s first official visit to Kyiv, where he met with President Volodymyr Zelensky.
Defense & Strategic Partnerships:
- Maritime Drone Production: The partnership focuses on co-producing Ukrainian-designed Unmanned Surface Vehicles (USVs) to bolster European maritime defense.
- PURL Initiative Support: Portugal is contributing €50 million to the US-led PURL initiative, enabling Ukraine to purchase American weaponry.
- Financial Security Guarantee: Portugal backed a €90 billion ($105 billion) European financial security guarantee for Ukraine.
- Educational Restoration: Portugal is funding the restoration of schools in Chernihiv and Cherkasy, specifically supporting the “Schools of Superheroes” in hospitals.
Major Financial Context
The partnership coincided with a landmark $105 billion (€90 billion) EU loan agreement finalized on December 19, 2025. This loan is designed to:
- Avert a Budget Crisis: It covers approximately two-thirds of Ukraine’s projected $160 billion funding gap for the next two years.
- Avoid Asset Risks: The EU opted to borrow cash on capital markets rather than directly using frozen Russian assets to fund the loan, avoiding immediate legal retaliation from Moscow.
Secure Resilience: President Zelensky described the loan as a “financial security guarantee” that provides the necessary means for Ukraine to continue its defense through 2027.
