Ukrainian defence companies gain new funding opportunities from the EU

The EDF, SAFE and EDIP programmes open funding opportunities for Ukrainian weapons developers. The main priority will be drones and counter-drone systems.

Ukrainian defence companies may gain access to several major European Union funding programmes, including the European Defence Fund, SAFE and EDIP.

The European Defence Fund remains the EU’s largest instrument supporting defence innovation, with a budget of EUR 7.3 billion for 2021–2027. Around EUR 1 billion is allocated to defence projects each year. To participate, applicants must form international consortia of at least three European companies or institutions.

Arsen Prykhodko, Director of International Business Development at Athlon Avia, said that, for now, Ukrainian companies can join only as “third parties” with funding of up to EUR 60,000. However, the EU is already discussing the possibility of full-scale participation of Ukraine’s defence industry in consortia.

“There is a window of opportunity that can be used — if you have either unique in-house ideas or partners who can use our expertise to turn it into a product,” he noted.

SAFE and new production requirements

Separately, the European Union is promoting the EUR 150 billion SAFE programme for joint weapons production and procurement. Ukraine is officially a partner in the programme, and Denmark and Portugal have already agreed to finance purchases of Ukrainian drones. At the same time, at least 65% of components in SAFE projects must come from the EU or Ukraine, while the use of U.S. and Chinese technologies is significantly restricted.

According to Prykhodko, EU countries are primarily interested in investing loan funds in their defence industry.

“For European countries to buy something Ukrainian, we either need to establish joint production or integrate European components into our products,” explained the Athlon Avia representative.

At the end of 2025, the EU also adopted the EDIP programme, which provides grants and financial assistance for the development of the defence industry. Of the total budget of EUR 1.5 billion, around EUR 300 million is planned to be allocated specifically to support Ukrainian defence companies.

According to Defense Express, the main funding priorities will be drones, counter-drone systems, loitering munitions, ISR systems, and electronic components. Applications for specific funding areas will open as early as June 2026.

Author: Stepan Haftko

Source: UNN