The European Union has preliminarily agreed to launch the European Defense Industrial Program (EDIP) with a budget of 1.5 billion euros for the period of 2025–2027. As part of this initiative, 300 million euros will be allocated to support Ukraine. It is expected that Kyiv will be able to participate in joint defense projects and enhance cooperation with European companies, paving the way for the gradual integration of the Ukrainian defense industrial complex into the European defense technological and industrial base.
This is reported by Finway
Key Provisions of the EDIP Program
For the first time in EU history, EDIP establishes mechanisms to ensure the security of supply for defense products in the European market. In particular, the share of components manufactured outside the EU or associated states in the final cost of the product must not exceed 35%. This step is aimed at increasing the autonomy of the European defense industry and reducing dependence on external suppliers.
“Kyiv will be able to engage in joint projects and deepen industrial cooperation with European companies with the prospect of integration into the European defense technological and industrial base.”
Next Steps and Funding
At this moment, the EDIP project is to be finally approved by the European Parliament and the EU Council. It is anticipated that after the start of the new EU budget cycle (2028–2034), the program will receive significantly more funding, allowing it to expand its capabilities and influence.
In parallel, the European Union is considering a proposal to use part of the 140 billion euro reparations loan, secured by frozen assets of the Russian Federation, to purchase American weapons for Ukraine. These funds are also planned to be used to support the defense industrial complex of Ukraine and the EU, further enhancing the region’s defense capabilities.