On March 30, the European Commission approved a €1.5 billion work program under the European Defence Industry Programme (EDIP), aimed at strengthening the defence industrial base in the EU and supporting cooperation with Ukraine. The funding will target weapons production, innovation, and business development in the defence sector.
For Ukraine, EDIP is expected to deliver the following benefits:
restoration and modernization of production facilities – €260 million through the Ukraine Support Instrument (USI) will help rebuild and upgrade critical defence infrastructure, increasing capacity to produce missiles, munitions, and counter-drone systems.
participation in joint European defence projects – €325 million is allocated for collaborative programmes open to Ukraine, allowing local companies to integrate into EU-led initiatives, gain technical expertise, and contribute to advanced air defence and missile development.
support for startups and SMEs – funding through the FAST supply chain acceleration fund (€100 million) and the BraveTech EU program (€35.3 million) will help Ukrainian startups and small- and medium-sized enterprises develop innovative solutions for urgent operational needs.
strengthening long-term industrial and technological capabilities – by linking Ukrainian industry with broader EU defence initiatives, EDIP promotes technology transfer, builds sustainable production capacity, and enhances resilience of Ukraine’s defence sector.
Overall, the program provides Ukraine with a comprehensive framework to rebuild and modernize its defence industry, improve industrial and technological self-sufficiency, and strengthen collaboration with European partners. By combining financial support, technical expertise, and joint projects, EDIP helps Ukraine meet immediate operational needs while laying the foundation for long-term growth and competitiveness in the defence sector.