EU–Ukraine unveil €160M defence innovation programme aimed at unlocking €400M in financing

Announced during the EU–Ukraine Business Summit in Brussels, the initiative marks a significant step toward strengthening Ukraine’s stability, advancing its defence-industrial base, and enhancing national defence capabilities.

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The agreement introduces a comprehensive €160 million financial programme, comprising a €140 million EU guarantee alongside €21 million in EU investment grants.

Combined, these instruments are expected to unlock up to €400 million in bank financing to support both capital expenditures and operational needs.

The programme is designed to back strategic sectors of the Ukrainian economy, with a strong focus on industries developing advanced dual-use technologies. These include areas such as air, land, and maritime drones, electronic protection systems, space technologies, communications, navigation, and critical components.

Importantly, the initiative is also set to open new opportunities for startups and scaleups operating at the intersection of defence and deep tech.

By reducing early-stage investment risk and enabling access to larger pools of capital, the programme could accelerate the transition from prototype to deployment particularly in fields like autonomous systems, AI-driven battlefield intelligence, and resilient communications.

According to Deputy Minister of Defence of Ukraine for European Integration, Serhiy Boyev:

"We are launching systematic cooperation with the European Commission in the field of investing in defence innovations.

Our efforts are aimed at supporting technologies that have already proven effective on the battlefield and determining the advantage in modern warfare."

“Today, dual-use technologies play an important role in both defence and industrial development. Therefore, such support contributes to specific Ukrainian capabilities: stronger production, greater technological capabilities, and the development of solutions needed by defence. In a broader sense, it is also a contribution to the security of the whole of Europe," the adviser to the Minister of Defence of Ukraine, Hanna Hvozdyar, noted.

Ukraine’s Ministry of Defence will oversee the programme, while the National Development Institution (NUR) will be responsible for its implementation.