EU makes first-ever move to open defense market to Ukraine

The European Parliament has approved a new regulation that launches its first program to allow Ukraine to mesh with the European continent’s defense and industry market. 

The European defense industry program (EDIP) has a budget worth 1.5 billion euros that runs through 2027.

The initiative opens the door to Ukraine’s integration into the EU’s defense-industrial ecosystem, and offers direct financial, technological, and production support to Ukraine. 

EDIP is built around three core objectives: boost joint European arms procurement, expand domestic production within EU countries, and establish a structured system for defense cooperation, replacing ad hoc approaches.

Of the overall budget, 300 million euros is allocated to a special Ukraine Support Instrument (USI). This will help modernize Ukraine’s defense industry and facilitate its integration into European supply chains. An additional Fund to Accelerate Defence Supply Chain Transformation (FAST) will be established with at least 150 million euros in funding.

EU Commissioner for Defense Andrius Kubilius said that EDIP is more than just financial aid for Ukraine.

“It is an opportunity to procure weapons in Ukraine, jointly with Ukraine, and for Ukraine. The programme structurally links the Ukrainian defense industry to the European defense technology base and integrates Ukrainian military innovations into European developments,” he said.

Kubilius also said that the more countries participate in joint projects, the larger the share of costs covered by the EU. A key funding condition is the “buy European” principle — at least 65 percent of components must come from EU or partner countries.

The regulation now requires formal approval by the EU Council before it is published in the Official Journal and comes into force.