EU Council approves EUR 300M programme for Ukraine’s defence industry
The EU Council has approved the European Defence Industry Programme (EDIP), within which €300 million is allocated to a special Ukraine Support Instrument aimed at modernizing and strengthening Ukraine’s defence-industrial sector.
This was stated in a press release from the EU Council, Ukrinform reports.
“Today the Council has formally adopted the European Defence Industry Programme (EDIP), an instrument designed to boost the EU’s defence readiness by strengthening the competitiveness and responsiveness of the European Defence Technology Industrial Base (EDTIB). The adoption marks the final step in the legislative procedure and will enable the programme’s timely implementation,” the press release said.
It is noted that of the €1.5 billion in grants planned for 2025–2027, €300 million are earmarked for a dedicated Ukraine Support Instrument, “a pivotal and unique instrument aimed at modernising and supporting Ukraine’s defence industry and fostering its integration into the wider European defence industrial ecosystem.”
According to the EU Council, EDIP will strengthen the ability of EU member states to withstand current and future threats and ensure that the entire bloc has timely access to and supply of defense products.
EDIP also foresees the possibility of increasing its budget through voluntary financial contributions by EU member states or third countries.
Under the program, the EU will fund, among other things, common procurement actions carried out by at least three countries (of which at least two must be member states), including for the establishment and maintenance of defence industrial readiness pools.
To protect and strengthen the EU defense industry, the program includes a requirement that components for the Ukraine Support Instrument originating from outside the EU and associated countries (EEA states) must not exceed 35% of total component costs of the end product.
No components may be sourced from non-associated countries that do not align with the security and defence interests of the EU or its member states.
The program also introduces the first EU-level security of supply framework to reinforce defence supply-chain resilience and improve the EU’s ability to respond swiftly in times of crises.
The document is scheduled to be signed on December 17, 2025 and will enter into force the day after its publication in the Official Journal of the European Union.
As reported, on March 5, 2024, the European Commission proposed the EDIP with a budget of €1.5 billion for 2025-2027 to better support joint defence procurement and strengthen defense-industrial production capacities, offering them a longer-term and more structured outlook.
Photo: EU