Ukraine joins EU defense supply chain under new €1.5 billion initiative

On Tuesday, November 25, the European Parliament approved a bill establishing the European Defence Industry Program (EDIP), designed to integrate Ukraine’s defence industry into the European Union’s defence-industrial complex.

According to a correspondent for European Truth from Strasbourg, EDIP aims to strengthen the EU’s defence industry, promote joint European defence procurement, expand defence production within the EU, and support Ukraine’s integration into Europe’s defence-industrial framework.

As part of the program, a Ukraine Support Instrument (USI) will be created, with €300 million of the total €1.5 billion program budget allocated for Ukraine through 2027.

European Commissioner for Defence Andrius Kubilius, presenting EDIP to the European Parliament, emphasised that the program will facilitate investment in the Ukrainian defence industry and integrate Ukrainian military innovations into the EU defence sector. He outlined three primary priorities for EDIP:

1. Prioritising joint defence procurement;

2. Strengthening Europe’s defence readiness through investment in industry and supply chains;

3. Transitioning from ad hoc measures to organised joint development, production, and procurement of defence equipment.

Kubilius also stressed that at least 65% of component costs must be produced within Europe.

Under EDIP, €1.2 billion in grants will be provided to support the European defence industry, including €300 million specifically for Ukraine. The program will also enable the procurement of defence equipment both in Ukraine and with participation from Ukrainian companies.

EDIP follows the EU’s broader defence roadmap presented by the European Commission on October 16, which identifies Ukraine as a central component of the EU’s strategy to strengthen defence readiness.

By Tamilla Hasanova