EU Officially Approves Program to Support Ukraine’s Defense Industry and Integrate It with the Union’s Defense Sector

The Council of the European Union has officially approved the European Defence Industry Programme (EDIP). The document provides, among other things, for allocating EUR 300 million to support, modernize, and integrate Ukraine’s defense industry into the EU’s defense sector.

The EU Council announced this.

The Council’s decision marks the final step in the legislative process and will enable the program to be implemented on time. EU member states had previously reached a preliminary agreement in October 2025 to allocate EUR 300 million to deepen defense cooperation with Ukraine.

The regulation for the program will be signed on December 17, 2025, and will enter into force the day after its publication in the Official Journal of the European Union.

“EDIP is a cornerstone of the EU’s renewed commitment to strengthening its defense preparedness. It will enhance the member states’ ability to withstand current and future threats, boost the competitiveness of the European Defence Technological and Industrial Base (EDTIB), and ensure the timely availability and supply of defense products across the Union,” the EU Council stated.

The program is intended to enhance the ability to produce and supply critically important defense equipment and to ensure Europe’s capacity to respond quickly to a deteriorating security situation.

“Meanwhile, it will deepen our partnership with Ukraine by bringing its defense industry closer to ours – to the mutual benefit of Europe and Ukraine,” emphasized Danish Defense Minister Troels Lund Poulsen, whose country holds the presidency of the EU Council.

The program provides €1.5 billion in grants for the period 2025–2027. Of this amount, €300 million has been allocated to deepen defense cooperation with Ukraine through the “Ukraine Support Instrument.”

The funds will be directed toward modernizing and supporting Ukraine’s defense industry and facilitating its integration into the broader European defense-industrial ecosystem.

Under the program, the EU will fund:

• joint procurement conducted by at least three countries (of which at least two must be EU member states), including for the creation and maintenance of defense industry readiness pools;
• measures to increase the production capacity of critically important defense products;
• the launch of European defense projects of common interest;
• improved interoperability and interchangeability;
• easier access to the defense product market for small and medium-sized enterprises, mid-cap companies, and startups.

According to the regulation, components originating from outside the EU and associated countries, as well as from Ukraine — in the part related to the Ukraine Support Instrument — must not exceed 35% of the total value of components in the final product.

In addition, EDIP establishes the first-ever mechanism for ensuring the security of defense product supply across the European Union, as well as a legal “toolkit” to promote long-term cooperation in the field of armaments among member states.