EU funding for Ukraine’s defense includes domestic market purchases
The Cabinet of Ministers of Ukraine has announced the commencement of using the European Union’s financial resources for the country’s defense sector. These funds will be directed not only towards the import of weapons but also to support Ukrainian manufacturers through direct funding of contracts.
Prime Minister Yulia Svyrydenko stated that within the framework of a special loan approved by the EU, there will be procurement of weapons, military equipment, and supplies for Ukraine’s Defense Forces. European funds will facilitate both imports and support of local manufacturers through direct contracts.
Considerable funding volumes are involved under the “Ukraine Support Loan,” with a total amount of up to €90 billion, out of which €60 billion is earmarked specifically for defense. In the coming years, particularly in 2026-2027, it is planned to use €28.3 billion of these funds, Svyrydenko announced on June 29.
Purchases will be managed through international organizations, which should ensure efficiency in the supply of armaments. Additionally, a system of monitoring, auditing, and reporting is being implemented in line with EU requirements to ensure the transparent use of funds.
European Commissioner for Defense and Space Andrius Kubilius noted that the priority will be on financing drone production. Such support can enhance Ukraine’s defense capabilities and stimulate the domestic defense production market.
| Year | Funding, billion euros | Purpose |
|---|---|---|
| 2026 | 28.3 | Defense |
| 2027 | 26.7 | Defense |
