The European Union has earmarked €300 million to support Ukraine’s defence-industrial complex under the new Ukraine Support Instrument (USI), which forms part of the European Defence Industry Programme (EDIP). The funding will be directed towards expanding the production capacity of defence companies and developing innovative technologies.
The launch of the programme was announced by Ukraine’s Minister of Digital Transformation, Mykhailo Fedorov. According to him, the funding will enable Ukrainian manufacturers to increase defence production volumes and accelerate the development of new technological solutions.
The relevant agreements were reached during the Ukraine–EU Defence Industry Forum, where the Ukrainian side and European Commissioner for Defence and Space Andrius Kubilius signed two agreements. The documents open access for Ukrainian defence companies to key European Union financing instruments.
In particular, companies will be eligible to apply for research and development grants under the European Defence Fund (EDF), as well as receive financing to expand production capacity through the EDIP programme.
The agreements must still be ratified by the Verkhovna Rada of Ukraine before entering into force.
Of the total funding, €260 million will be directed specifically towards increasing the production capacity of Ukraine’s defence-industrial complex. A further €35.3 million will be allocated to support innovative projects under the BraveTech EU USI grant programme.
Under this initiative, the Ukrainian Brave1 platform will provide grants of up to €200,000 for projects with a technology readiness level of TRL4 or higher. The financing may cover up to 100% of participants’ costs, helping accelerate the transition of promising technologies to industrial production.
According to Fedorov, the BraveTech EU programme, implemented under the European Defence Fund, has already become the first joint Ukraine–EU initiative aimed at developing defence innovation. It brings together the European DefTech Forges programme and Ukraine’s Brave1 grant platform. The next stage of cooperation will involve joint grants for Ukrainian and European defence companies through the Ukraine Support Instrument.
The minister emphasised that Ukraine’s defence industry has already become one of the key sources of technological innovation in modern warfare, while the new EU programme is expected to help scale these developments and strengthen both Ukraine’s defence capabilities and European security.
