On July 15, Ukraine and the European Union signed two agreements that open access for Ukrainian defense companies to EU grant funding. The funds can be directed toward research and development under the European Defence Fund (EDF) and toward expanding production capacity under the European Defence Industry Programme (EDIP). The agreements will enter into force following ratification by the Verkhovna Rada, according to the Ukrainian Ministry of Defence.
The first document concerns Ukraine’s accession to the EDF — the EU’s flagship program supporting defense research and development. For 2026, more than €1 billion has been allocated to it. Following accession, Ukrainian state and private defense enterprises will be able to participate in joint R&D projects with European partners and attract grant funding for the development of new solutions.
The second document is a funding agreement under EDIP, the EU’s 2026–2027 program with a total grant budget of €1.5 billion. It is within EDIP that a dedicated instrument has been created for Ukraine — the BraveTech EU Ukraine Support Instrument (USI), aimed at rebuilding and developing Ukraine’s defense-industrial complex and integrating Ukrainian enterprises into joint European projects.
Approximately €300 million has been allocated to the USI:
- €260 million will go toward expanding production capacities;
- €35.3 million — toward innovation development under the BraveTech EU grant program, where Brave1 will provide grants of up to €200,000 for projects from technology readiness level TRL4+.
Grant funding may cover up to 100% of costs for Ukrainian participants.
“The agreements we have signed will help scale our defense projects and programs, attract investment, and support startups. Joint R&D is a unique opportunity for the EU and Ukraine to take a major step in integrating defense industries. Together we are shaping priorities and showing our European colleagues the trends and challenges of modern warfare,” said Mykhailo Fedorov.
Earlier, Head of the Defence Intelligence of Ukraine Kyrylo Budanov, at a meeting with European Commissioner for Defence and Space Andrius Kubilius, stated that Ukraine’s untapped defense-industrial potential amounts to approximately $30 billion. With existing production capacity of $50 billion, Ukraine is able to procure only $20 billion worth of products for the front.
According to Fedorov, the BraveTech EU program under the EDF — the first joint Ukrainian-European defense innovation program — is already gaining momentum and includes the DefTech Forges initiative and a dedicated Brave1 grant line for Ukrainian companies.
The next stage, according to the Ministry of Defence, will be the launch of grants for Ukrainian companies and companies from EU member states directly under the Ukraine Support Instrument — following parliamentary ratification of the signed agreements.
