Ukraine’s state-owned Oschadbank has issued bank guarantees totaling €837 million to facilitate the procurement of drones from four Ukrainian manufacturers. The initiative is part of a bilateral defense agreement between the governments of Ukraine and the Netherlands aimed at supplying unmanned aerial vehicles (UAVs) to the Ukrainian Defense Forces, according to a statement from the bank’s press office.
Under the agreement, Ukrainian drone producers will sign direct contracts with the Dutch government. Oschadbank’s financial guarantees enable the manufacturers to receive advance payments under these contracts. The Dutch government serves as the beneficiary of the guarantees.
To date, four Ukrainian companies—selected jointly by Ukraine’s Ministry of Defense and the Dutch government—have already received guarantees from Oschadbank to participate in the program.
Yuriy Katsion, Deputy Chairman of the Management Board of Oschadbank in charge of corporate business, noted that other partner countries are also prepared to adopt a similar mechanism as part of the “Drone Line” initiative launched by the President of Ukraine.
According to Katsion, this financial instrument—combined with preferential lending, state guarantees, and bank consortium participation—opens new avenues for the development of Ukraine’s defense manufacturing sector.
Minister of Defense Denys Shmyhal thanked the Dutch government for supporting Ukrainian drone manufacturers and emphasized that Oschadbank’s bank guarantees would accelerate contract execution and frontline deliveries of UAVs.
As of April 2025, Oschadbank ranked second among Ukrainian banks in terms of total assets, with UAH 449.7 billion, representing 12% of the national banking system’s assets, according to the National Bank of Ukraine.
