Ukrainian defence manufacturers will gain additional opportunities to expand production and fulfil contracts for the Defence Forces of Ukraine.
The Government has approved the procedure for using European Union funds provided under the Ukraine Support Loan, a special loan supporting Ukraine’s defence industrial capacity in 2026–2027.
This will enable the use of EU funds to procure weapons, military vehicles and equipment, and other assets for the Armed Forces of Ukraine.
“These funds will be used as efficiently as possible and in a way that is fully transparent to our partners, building on new approaches to supporting the Ukrainian military that have already delivered strong results. We have achieved significant savings, diversified supply sources, and accelerated deliveries without compromising quality,” said Mstyslav Banik, Deputy Minister of Defence of Ukraine.
According to him, the primary objective is to provide the financial resources needed to ensure the rapid and uninterrupted delivery of critical weapons to the military on the front line.
Benefits of the new EU-funded procurement mechanism
The new framework introduces several important advantages:
- Direct support for Ukraine’s defence industry. EU funding will be used not only to import weapons but also to finance contracts with Ukrainian manufacturers directly.
- Accelerated international contracting. Procurement will be carried out, among other channels, through international organisations, in accordance with their established procedures, thereby accelerating the delivery of critical components and finished weapons.
This comprehensive approach will allow Ukrainian manufacturers to plan production well in advance.
Oversight and reporting in line with EU standards
The document establishes coordination mechanisms between the Ministry of Defence of Ukraine, other security and defence sector bodies, and authorised procurement entities.
The framework also introduces monitoring, oversight, auditing, and reporting in line with European Union requirements to ensure the transparent and efficient use of the funds.
“Our approach is founded on data-driven decision-making, with the human factor minimised, transparency ensured, and robust anti-corruption oversight. Wherever competition exists, procurement is conducted through competitive procedures. Even in wartime, we are building a system in which every decision is justified, verified, and accountable. This matters both to our partners supporting Ukraine and to the Ukrainian people. Most importantly, it matters to the service members on the front line, whose needs are the overriding priority in every decision we take,” said Mstyslav Banik, Deputy Minister of Defence of Ukraine.
Procurement will be carried out in accordance with the list of defence products that has received a positive assessment from the European Commission. The Commission will also have access to information and extracts relating to the relevant accounts, in accordance with the procedure set out in the resolution.
About the Ukraine Support Loan
The Ukraine Support Loan agreement was signed and ratified at the end of May.
This loan instrument provides up to €90 billion in European Union lending for 2026–2027, including €60 billion allocated to Ukraine’s defence needs.
This year alone, €28.3 billion in defence support is expected to be provided under the Ukraine Support Loan.
The Ministry of Defence extends its gratitude to the European Union for its financial support to Ukraine’s defence and security sector. We are working to ensure that the funds secured strengthen Ukrainian defence manufacturers and service members on the front line as quickly as possible. We continue to improve procurement in line with Ukraine’s Defence Strategy.