The European Commission, together with Ukraine’s Ministry of Defence, is launching a new program to support innovative defence technologies with an initial budget of €161 million. The relevant agreement was signed in Brussels during the EU–Ukraine Business Summit. The instrument is expected to mobilize significantly larger volumes of funding — up to €400 million through additional bank financing.
The program is focused on the development of dual-use technologies, meaning those that can be applied in both military and civilian sectors. Its priorities include the development and production of aerial, ground, and maritime drones, electronic protection systems, space technologies, communication systems, and navigation solutions. Particular emphasis is being placed on localization and the expansion of production of critically important components for Ukraine’s defence-industrial complex.
Of the total funding volume, €140 million will be provided in the form of EU guarantees, helping reduce risks for investors and banks, while another €21 million will be allocated as a direct investment grant. This mechanism is intended to encourage commercial banks to lend more actively to Ukrainian defence companies, both for capital expenditures and for covering operating costs.
According to Deputy Defence Minister for European Integration Serhii Boiev, the initiative marks the launch of systematic and long-term cooperation with the European Commission in the field of defence innovation. The focus will be on technologies that have already demonstrated their effectiveness in real combat conditions.
Defence Minister’s adviser Anna Hvozdiar emphasized that support for dual-use technologies will not only strengthen Ukraine’s defence capabilities, but also contribute to industrial development and reinforce security across Europe.
Implementation of the program will be coordinated by Ukraine’s Ministry of Defence, while the National Development Institution has been designated as the direct implementing body. Overall, the initiative forms part of Ukraine’s broader strategy to scale up the production of defence technologies — primarily unmanned systems and electronic warfare capabilities, which have become key elements of modern warfare — as well as to integrate Ukraine’s defence-industrial complex into the European market and attract external financing.
At the same time, Ukraine is strengthening bilateral cooperation with individual EU member states. On April 14, Defence Minister Mykhailo Fedorov announced the agreement of a large-scale €4 billion defence cooperation package with Germany. It includes the procurement of missiles for Patriot air defence systems as well as joint drone production.
Within the framework of the new initiative, six partnership agreements have already been signed involving Ukrainian companies, including TAF Industries, Culver Aerospace, Ukraviasystem, Fire Point, and Luch Design Bureau.
A separate component is the Build with Ukraine format, which предусматривает close cooperation between Ukraine’s defence industry and European partners: Ukrainian developments and battlefield experience are combined with the manufacturing capabilities of allied countries. This is expected to scale weapons production not only inside Ukraine but also abroad, accelerating deliveries and strengthening shared defence capacity.
