EU allocates €1 billion to strengthen Ukrainian defence industry

The European Union has committed €1 billion to support the development of Ukraine’s defence industry, EU High Representative for Foreign Affairs and Security Policy Kaja Kallas announced during her visit to Kyiv.

The funding underscores the EU's continued backing of Ukraine in the face of Russia’s ongoing aggression, Caliber.Az reports citing the European Commission.

The investment aims to bolster Ukraine’s domestic defence production capabilities and enhance its long-term self-reliance in the security sector.

Speaking in Kyiv, Kallas emphasized the growing role of innovation in modern defence, noting there is a lot of innovation going on in the defence industry, and the EU can do more to help Ukraine.

It is anticipated that the €1 billion allocation will be sourced from the profits generated by frozen Russian assets—an approach previously outlined in April by EU Ambassador to Ukraine Katarína Mathernová. In 2024, this mechanism facilitated the provision of €400 million in EU funding specifically for the procurement of weapons manufactured within Ukraine.

European Commissioner for Defence and Space Andrius Kubilius has also indicated that the EU may double its military assistance to Ukraine in 2025 by significantly expanding orders placed with Ukrainian arms manufacturers. These domestic producers reportedly deliver military hardware at approximately half the cost of their Western counterparts, offering both economic and strategic advantages.

To date, Ukraine’s Western allies have collectively financed more than $1.5 billion in weapons procurement from Ukrainian defence enterprises, underscoring a growing trend toward strengthening Kyiv’s domestic military-industrial base.

By Vafa Guliyeva