SAFE INFODAY: €150 BILLION FROM THE EU FOR DEFENCE – WHAT ARE THE OPPORTUNITIES FOR UKRAINE’S DEFENCE INDUSTRY?

Ukraine Facility Platform is working to create opportunities for Ukrainian defence companies to join European programmes aimed at strengthening the EU’s defence industrial base.

At SAFE INFODAY – an event organised for private Ukrainian defence companies – Olga Khoroshylova, Lead of the “Defence Industry” sector at UAFP, focused on practical aspects: how Ukrainian defence manufacturers can access SAFE funding, participate in European defence contracts, and engage in joint procurement initiatives. The event was held in partnership with The Ukrainian Council of Defence Industry and other defence industry associations.

Why is it crucial for Ukraine to be integrated into European defence supply chains and production ecosystems? At the strategic level, Europe recognises that true strength lies in defence capabilities and strategic autonomy in supply chains. The EU aims to achieve this by leveraging Ukraine’s unique advantages: real combat experience, proficiency in operating modern weapons systems, the ability to adapt quickly to evolving technical conditions of warfare, and a proven capacity to deliver results efficiently and cost-effectively. Ukraine’s key role is not only to defend itself but also to contribute its strengths to the broader European project of building a new security architecture.

The tools for such integration already exist and are currently being refined. The EU’s Security Action for Europe (SAFE) initiative foresees up to €150 billion in preferential loans by 2030 for EU countries to conduct joint defence procurement and expand defence production capacity.

“The SAFE mechanism is still being finalised by our partners, with completion expected by the end of this year. However, Ukrainian manufacturers already have the opportunity to co-develop new defence capabilities with European partners – a mutually beneficial process,” said Olga Khoroshylova. “This means not only producing on contract but also training partners in the use of equipment and sharing battlefield experience. Those who take this collaborative path with European defence industry players will be well-positioned to benefit from everything SAFE has to offer.”

This INFODAY is the first in a series of UAFP workshops for Ukrainian companies. Based on the discussions, UAFP will develop policy recommendations for the European Commission and EU member states to enable more effective cooperation with Ukraine’s defence sector under the SAFE framework.

What did we discuss with representatives of Ukraine’s defence industry?

To build partnerships with European companies eligible to apply for SAFE co-financing, Ukrainian defence businesses must meet the criteria defined in the SAFE Directive – a topic explored in detail during the event.

How can Ukrainian defence companies engage with the SAFE mechanism?

1. Act as subcontractors within European supply chains

Ukrainian defence companies can participate in projects that include at least one partner from an EU member state or EEA country (Iceland, Norway, Liechtenstein). If such a partner submits a funding application, Ukrainian firms can supply components or contribute to the development of new systems.

For example, a joint EU–Ukrainian venture could apply to develop an air defence system, with the Ukrainian side providing radar technologies and the European side managing control systems, integration, and final certification.

2. Secure direct contracts from SAFE-participating EU countries as contractors

EU member states engaged in SAFE-funded procurement may order any defence product listed in the Directive directly from Ukrainian manufacturers.

If you are a Ukrainian defence company interested in contributing to the development of EU-level recommendations for the effective implementation of SAFE – contact us at [email protected].