The EU plans to include Ukraine in the bloc’s defense industry support scheme with a separate budget of €1.5B.

The EC plans to propose Ukraine’s membership in the EU defense industry support scheme. This will both incorporate Kyiv’s experience and bring Ukraine closer to EU membership.

It is noted that one of the three objectives of the proposal to the European Defense Investment Program (EDIP) is a step that “will contribute to the restoration, reconstruction, and modernization of the Ukrainian defense technological and industrial base and progressive integration into Europe, thereby contributing to mutual stability, security, peace, prosperity, and stability.”

For this, Ukraine must be a full member of any consortium for joint procurement of military equipment with other EU member states, have access to EU funds, and be exempt from paying VAT in case of joint ownership.

Previous defense-industrial programs adopted in the EU never considered any third country as a full participant in the schemes, with the exception of Norway.

The document also provides a separate budget for the Ukrainian defense-industrial complex of at least €1.5B.