EU and Ukraine to Launch 343 Million Euro Dual-Use Technology Programs

The European Union and Ukraine are set to launch ambitious dual-use technology programs totaling 343 million euros, aiming to bolster Ukraine's defense capabilities and attract significant investment. Announced by Ukraine's Ministry of Defense, the agreements were finalized during the Ukraine Recovery Conference in Gdansk.

The initiative is supported by EU guarantees and blended finance grants, with expectations that it will draw in over 700 million euros in investments. These funds are earmarked for the production of unmanned aerial vehicles (UAVs), counter-drone systems, unmanned ground vehicles, advanced aviation technologies, and other strategic industrial sectors. The Ministry of Defense emphasized that the investment targets the entire modern defense technology ecosystem, not just individual products.

Funding will be channeled through the "Ukraine Facility" pillar II, specifically its "Investment Scheme for Ukraine." This scheme, with a total budget of 9.5 billion euros (7.8 billion in guarantees and 1.7 billion in blended finance grants), focuses on dual-use technologies and strategic industries starting in autumn 2025. Additionally, Poland's Bank Gospodarstwa Krajowego and Ukrainian UAV manufacturer Skyfall have signed a memorandum of understanding to finance investments and expand production capacity.

This initiative aims to help Skyfall meet growing demand and integrate into the European industrial and technological base. The European Commission and Ukraine's Ministry of Defense have previously collaborated on investments in innovative technologies, including a 161 million euro financial program. Ukraine's cabinet has also launched "Brave International" to establish clear rules for cooperation with international partners in defense innovation.