Ukraine and Germany have agreed on a €4 billion defense cooperation package aimed at strengthening air defense, developing long-range capabilities, and expanding joint drone production.

Axar.az reports that the agreement includes financing a contract for several hundred Patriot missile system missiles to enhance protection of Ukrainian cities and critical infrastructure, Ukrainian Defense Minister Mykhailo Fedorov said.

He added that the package also provides for the delivery of 36 IRIS-T air defense system launchers, which will strengthen Ukraine’s multi-layered air defense system.

In addition, €300 million will be invested in developing long-range capabilities to expand domestic weapons production.

The two countries will also launch joint production of AI-powered mid-range drones under the “Build with Ukraine” initiative, with an initial target of 5,000 units for the armed forces.

The agreement was reached following talks in Berlin between Fedorov and German defense Minister Boris Pistorius.