Ukrainian defence companies to gain access to EU funding programmes, including €300m Ukraine Support Instrument

Ukrainian defence companies will gain access to EU programmes: the European Defence Fund (EDF) and the European Defence Industry Programme (EDIP). The relevant agreements were signed this week by European Commissioner Andrius Kubilius and Ukrainian Defence Minister Mykhailo Fedorov during the Ukraine–EU Defence Industry Forum.

Once the agreements are ratified by parliament, Ukrainian companies will be eligible to apply for grants to support research and development projects under the European Defence Fund, as well as funding to expand manufacturing capacity through the European Defence Industry Programme.

Until now, Ukrainian defence companies could only participate in European Defence Fund programmes as third-country entities, significantly limiting their access to funding. Once the agreements take effect, they will be able to join EDF projects as full beneficiaries, receive direct EU grants, and participate in joint research and development programmes.

In addition, EDF projects will now be able to be carried out in Ukraine, including testing and evaluating new technologies under real-world conditions. Joint projects will also support the development of defence systems in line with NATO and European Union standards.

A separate component of EDIP is the Ukraine Support Instrument (USI), which has a budget of €300 million. Of that amount, €260 million is earmarked for expanding the manufacturing capacity of Ukraine’s defence industry, while a further €35.3 million will fund innovation projects through the BraveTech EU USI grant programme.

According to a Brave1 representative, the Ukrainian defence technology cluster will provide grants of up to €200,000 for projects with a Technology Readiness Level (TRL) of 4 or higher. The grants may cover up to 100% of eligible project costs.

A spokesperson for the cluster also stated that BraveTech EU, established under the European Defence Fund, is already operating as a joint mechanism to support defence innovation in Ukraine and the European Union. It includes the European DefTech Forges initiative and a dedicated Brave1 grant programme for Ukrainian defence companies.

The next step will be the launch of joint grant calls for Ukrainian and European companies under the Ukraine Support Instrument.