Ukraine became part of the European Defense Industrial Strategy
posted 06 March 2024 11:09

Integration and support of the Ukrainian defense industry has become one of the goals of the European Defense Industrial Strategy (EDIS), which was presented in Brussels on March 5.

The goal of the strategy is to strengthen the European defense technology industrial base so that the EU defense industry is able to meet the needs of member states in a timely and sufficient manner. Its implementation has already been earmarked for €1.5 billion from the EU budget over 2025-2027, with the possibility of expanding funding.

The first-ever European Defense and Industrial Strategy was prompted by Russia's armed aggression against Ukraine.

"Faced with the return of a high-intensity war in Europe after Russia's unprovoked full-scale invasion of Ukraine in 2022, the EU must quickly strengthen its defense preparedness. The rules-based global order is being severely tested, and countries in the EU's neighborhood, as well as beyond, are increasingly affected by tensions, instability, hybrid threats and armed conflicts. These developments challenge our security, prosperity and democratic values," the Strategy says.

It should be noted that during the development of the document, consultations were held with the relevant Ukrainian agencies regarding our experience in defense and protection against Russia's armed aggression, as well as our vision of the development of the European and Ukrainian defense industry. The Ministry of Strategic Industries submitted its proposals, which were partially taken into account by the European Commission.

Cooperation between the defense industries of Ukraine and Europe is envisaged, which will strengthen both sides and enable both to gain mutual benefits.

  • It is proposed that the Ukrainian industry could participate in the Union's defense support program. Ukraine will be able to participate in joint procurement, and Ukrainian defense companies will be supported in building capacity and cooperation with the European industry.
  • It will also stimulate cooperation between Ukrainian and European industries and exchange of information on standards and experience.
  • To strengthen cooperation, the EU will host the EU-Ukraine Defense Industry Forum in 2024.
  • To ensure interaction between EU startups and innovators and Ukrainian industry and armed forces, the EU will open an Innovation Office in Kyiv.

The European Defense Industrial Strategy is accompanied by the European Defense Industry Program (EDIP). This is a document that prescribes the mechanism for implementing the Strategy and is a legislative initiative in the future. In the future, it must be approved by the European Parliament and the Council of Europe.

"Due to Ukraine's upcoming accession to the EU, the program is obliged to strengthen cooperation with Ukraine at the industrial level. As part of the EU's future commitment to Ukraine's security, the EU should promote greater cooperation with Ukrainian PSD to enhance its ability to meet urgent needs, and work towards harmonizing standards and improving interoperability," the document says.

EDIP provides for:

  • Open membership in European defense support programs for Ukraine.
  • A separate budget line to support Ukraine's defense industry and defense companies.
  • To finance this budget item, a share of the proceeds from frozen Russian sovereign assets may be used, among other things. This requires a decision of the EU Council on the proposal of the High Representative.

This step will support the capacities of the Ukrainian defense industry, integrate it into the EU's defense industrial base, and bring the country closer to EU membership.

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