Move gives Ukrainian firms access to €7.3 billion fund for defence research and capability programmes
Ukraine is set to gain associate-country status under the European Defence Fund (EDF), enabling its defence and technology organisations to participate in EU-financed collaborative research and capability-development projects.
The decision, agreed in principle by EU negotiators on 5 November, marks Kyiv’s first formal access to an EU-level defence funding framework. Until now, Ukraine has received EU military support through mechanisms such as the European Peace Facility, but not through dedicated industrial or R&D financing.
Once adopted, the new status will allow Ukrainian entities to compete for EDF-funded research and capability tenders. It will also open access to co-financing and partnership opportunities with European defence manufacturers in areas such as sensors, munitions and dual-use technologies.
Launched in 2021 with a €7.3 billion budget, the EDF supports joint research and development aimed at strengthening Europe’s defence-industrial base. The fund typically supports large-scale collaborative R&D and capability projects valued between €20 million and €120 million, led by industry groupings (consortia) from at least three EU member states.
Extending this framework to Ukraine would integrate the country’s wartime-tested engineering capacity into European production networks and collaborative projects, giving Ukrainian firms a route into higher-value EU initiatives.
For the EU, Ukraine’s inclusion is both strategic and practical. It enhances Europe’s supply-chain resilience and production capacity at a time when the bloc is seeking to boost defence investment under its ReArm Europe agenda.
“We need to maximise our investments in defence and dual-use technologies – together in Europe and with Ukraine,” said Denmark’s defence minister Troels Lund Poulsen.
The provisional agreement must still be formally adopted by both the European Parliament and the Council of the EU, expected before the end of 2025. Once in force, Ukrainian organisations will be eligible to apply for upcoming EDF funding rounds.