A €1.5 billion EU program will boost Ukraine’s drone capabilities, ammunition production, and defense innovation.

According to a statement from the Ministry of Defense of Ukraine.

The European Commission has approved a €1.5 billion work program under the European Defence Industry Programme (EDIP), aimed at strengthening the defense industries of both Europe and Ukraine, expanding production capacity, and driving innovation.

The program includes funding for joint projects, support for Ukraine’s defense-industrial complex, and new opportunities for defense companies and startups.

Production funding and support for Ukraine

More than €700 million will be allocated to scale up the production of critical defense capabilities, including counter-drone systems, missiles, and munitions.

Of this amount, €260 million is designated under the Ukraine Support Instrument (USI) to restore and modernize Ukraine’s defense-industrial base. This will fund joint projects between Ukraine and EU member states based on urgent operational needs, allowing production to expand simultaneously in both Ukraine and the EU.

Joint defense projects

€325 million will be allocated to European Defence Projects of Common Interest (EDPCI), supporting large-scale cooperative initiatives in the defense sector.

In addition to EU member states, Ukraine and Norway are eligible to participate in these projects.

Procurement and capability development

Another €240 million is earmarked for joint procurement of defense equipment by EU member states and Norway. This includes counter-drone systems, air and missile defense, as well as land and naval combat systems.

Support for startups and innovation

A key focus of the program is innovation and support for defense startups.

€100 million will be allocated to small and medium-sized enterprises through the FAST fund (Fund Accelerating Defence Supply Chains Transformation).

An additional €35.3 million is designated for the BraveTech EU program—a joint grant initiative for startups from Ukraine and the EU, coordinated by the Brave1 defense tech cluster. The focus is on developing innovative solutions for the needs of Ukraine’s security and defense forces.

Next steps

The first EDIP calls for proposals were published on March 31, 2026, on the European Commission portal.

Calls under the Ukraine Support Instrument—specifically the Industrial Reinforcement Act—are expected to open in June.

Ukrainian companies and organizations will be able to apply for funding through joint projects with European partners. The startup grant program is expected to open in late summer.

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