Kateryna Chornovol19:43, 08.12.25

A total of €1.5 billion in grants will be allocated under the program between 2025 and 2027, with a portion going to Ukraine.

The Council of the European Union approved the European Defence Industry Programme , which provides, among other things, for the integration of the Ukrainian defence industrial complex into the European one.

As stated in a statement published on the EU Council website , this program is “the cornerstone of the EU’s renewed commitment to strengthening its defense preparedness.” It aims to strengthen the bloc’s ability to counter current and future threats and ensure the timely availability and supply of defense products throughout the EU.

A total of €1.5 billion in grants will be allocated under the program between 2025 and 2027. Part of these funds will be used to develop Ukraine’s defense industry.

“Of this amount, €300 million has been allocated to the dedicated Ukraine Support Instrument – ​​a key and unique instrument aimed at modernising and supporting Ukraine’s defence industry and facilitating its integration into the wider European defence industrial ecosystem,” the statement said.

In addition, further replenishment of the programme budget is possible in the future – for example, through voluntary financial contributions from Member States or other parties.

What will the European Union finance under the program?

According to the EU Council, the bloc will provide funds for:

• joint procurement by at least three countries (of which at least two must be Member States), in particular for the establishment and maintenance of defence industrial readiness pools;
• industrial strengthening measures consisting of measures to increase the production capacity of critical defense products;
• launch of European Defence Projects of Common Interest aimed at promoting the development of the military potential of Member States:
• supportive actions, including measures to enhance interoperability and interchangeability, as well as measures to facilitate access to the defense market for small and medium-sized enterprises, mid-cap companies and start-ups.

Notably, the document specifies requirements for components in manufactured equipment. Specifically, the content of components originating outside the European Union and associated countries—as well as from Ukraine for the Ukraine Support Instrument—must constitute no more than 35% of the total component value of the final product.

Furthermore, components from non-associated countries cannot be integrated if this is contrary to the security and defence interests of the EU or the bloc’s member states.

“The Regulation will be signed on 17 December 2025 and will enter into force on the day following its publication in the Official Journal of the European Union,” the EU Council website states.

(C)UNIAN 2025