Ukraine’s MoD and European Commission agree on funding for new defense technologies

On the second day of the Ukraine–EU Business Summit in Brussels, the European Commission and Ukraine’s Ministry of Defense signed a Declaration of Cooperation on investments in advanced and breakthrough technologies.

According to an Ukrinform correspondent, the new program will be implemented by the National Development Institution of Ukraine with EU financing under the Ukraine Facility, Pillar II.

It involves €161 million in EU guarantees and grants aimed at mobilizing €400 million in funding for technologies that strengthen Ukraine’s defense capability.

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Gert Jan Koopman, Director‑General for Neighbourhood and Enlargement Negotiations at the European Commission, stated that this is support for industries that are critically important for the security of Ukraine, as well as the security of Europe.

He emphasized the rapid implementation of the project concept, which was first discussed in November 2025. The program will operate through banks benefiting from the guarantees, Koopman explained, adding that this project is only the first of several similar initiatives planned for the future.

“The important feature of this program is that it moves us from fragmented support to a systemic investment regime,” said Serhii Boyev, Deputy Minister of Defense of Ukraine for European Integration.

He also stressed that Ukraine’s defense sector is now not only a consumer of certain resources but also “a driver of innovation and industrial growth.”

The European Commission will support the program by providing €140 million in guarantees and €21 million in investment grants to the Government of Ukraine.

This financial assistance follows approval by the Steering Board of the Ukraine Investment Framework at its sixth meeting on March 5, 2026, of the initiative titled National Development Institution of Ukraine – NDI4Ukraine.

The Ministry of Defense will coordinate implementation of the program, ensuring additional capitalization and directing investment grants to the National Development Institution of Ukraine.

The program will provide access to financing for companies operating in strategic high‑tech sectors, supporting both capital investments and operating costs of enterprises developing, producing, or scaling advanced solutions.

It will cover strategic areas such as aerial, ground, and maritime drones, electronic protection, space technologies, communications, navigation, and critical components, among others.

As reported, the annual Ukraine–EU Business Summit, which began on April 22, is now underway in Brussels