The EU will make its first contribution to a dedicated defense fund and help to develop the defense industry together with Ukraine.

The EU will invest the first €40M into a dedicated European defense fund, seeking to strengthen its military capabilities. The European Investment Fund (EIF), which provides financing to small and medium-sized enterprises, will contribute to the fund being formed by Keen Venture Partners with a target volume of €125M.

The EIB, the EU financial institution of which the EIF is a member, is expected to increase its investment in defense projects by 100% this year. Keen Venture Partners will conduct the first round of fundraising in the third quarter of 2025. The fund will support 20 to 25 startups.

What is known now is that the EU countries have agreed to create a €150B Security Action for Europe (SAFE) credit facility.

According to the Prime Minister Denys Shmyhal, Ukraine has been officially recognized as a partner country, which increases the chances of participating in arms supply chains in joint EU defense procurement.

The SAFE initiative is aimed at stimulating investment in the EU defense industry.