During the EU–Ukraine Defence Industry Forum: Armouring Cooperation, Ukraine and the European Union signed two agreements: one on Ukraine’s association with the European Defence Fund and another on financing under the European Defence Industry Programme (EDIP).
“We have signed agreements that will enable us to scale up our defence projects and programmes, attract investment and support start-ups. Joint R&D offers the EU and Ukraine an opportunity to make a major leap forward in integrating our defence industries. Together, we are shaping priorities and demonstrating to our European partners the trends and challenges of modern warfare. We are building win-win relations and bringing new value to our partnership with the EU,” stated Minister of Defence of Ukraine Mykhailo Fedorov.
What the signed agreements entail
The agreements create new opportunities for Ukraine to participate in joint European defence programmes, attract financing and develop partnerships between Ukrainian and European manufacturers.
- Ukraine’s association with the European Defence Fund (EDF) will enable Ukrainian companies and research institutions to participate in joint European defence research and development projects, establish international consortia and deepen cooperation with partners from EU Member States. The EDF is the European Union’s key programme supporting defence research and development. Its budget for 2026 will exceed €1 billion.
- The financing agreement under EDIP establishes a dedicated mechanism to support Ukraine’s defence industry — the Ukraine Support Instrument. Approximately €300 million will be allocated to strengthening Ukraine’s defence industry and developing joint Ukrainian-European innovations. Of this amount, €260 million is earmarked for expanding and modernising production capacities, while a further €35.3 million will support BraveTech EU, a joint Ukraine-EU initiative aimed at advancing breakthrough defence technologies. The funding may cover up to 100% of the costs incurred by Ukrainian participants.
EDIP is an EU programme for 2026–2027 aimed at strengthening the European defence industry. It has an overall budget of €1.5 billion in grant funding.
“Ukraine’s defence industry has learned to develop technological solutions in direct response to the needs of the frontline. The next step is to provide these solutions with the scale they require and integrate them into European development and production programmes. This is precisely why the signed agreements are important: they will help transform solutions proven in Ukraine into shared European capabilities,” emphasised Anna Gvozdiar, Adviser to the Minister of Defence of Ukraine.
The signing of the two agreements represents a practical step towards the full integration of Ukraine’s defence industry into the European defence ecosystem. It expands opportunities for joint development, production and the scaling of technologies needed to strengthen the defence capabilities of both Ukraine and Europe.
The agreements will enter into force following their ratification by the Ukrainian Parliament (Verkhovna Rada of Ukraine).