EU Will Launch New Program to Support Defense Startups With Ukraine’s Participation

The European Union will launch the Agile and Rapid Defence Innovation (AGILE) investment program, worth €115 million, which Ukrainian companies will be able to join.

The European Council and the European Parliament agreed on the program’s creation on July 15, according to Babel.

AGILE is set to begin operations in early 2027 following formal approval by both European institutions.

The program aims to accelerate the development and implementation of new defense technologies to shorten the time it takes for them to move from development to practical application.

The European Commission noted that the experience of the Russo-Ukrainian war has demonstrated the need to rapidly develop, test, and scale new technologies within weeks or months, rather than years.

Ukraine will be invited to participate in AGILE on the basis of the Association Agreement with the EU. Ukrainian companies will be able to participate in the program without paying any entry fees. The program will focus primarily on small and medium-sized enterprises, startups, and scaleup companies.

Funding will be provided to projects in the fields of artificial intelligence, unmanned systems, robotics, quantum technologies, and cybersecurity. The EU will be able to cover up to 100% of eligible costs, and decisions on grant awards will be made within four months.

The publication reported that the RAZOM mechanism will also be established as part of the program. It will allow for the supply of weapons or technologies—funded under AGILE and certified by the European Commission—to the Ukrainian Armed Forces.

It is expected that procurements for Ukraine will be financed through an EU defense loan totaling €60 billion.

The European Commission has also established the EU-Ukraine Drone Alliance—a new platform for cooperation between Ukraine and the European Union in the field of unmanned systems. The Alliance’s inaugural council comprises 18 companies—9 Ukrainian and 9 European.

Together, they will set priorities for the platform’s development and form specialized working groups on cooperation.

On July 15, European Commission President Ursula von der Leyen announced the signing of a bilateral agreement between the European Union and Ukraine on the joint production of unmanned aerial vehicles.