EU, Ukraine Launch €343 Million Programs to Boost Dual-Use Technologies and Defense Industry

Photo: mod.gov.ua

The European Commission, Ukraine’s Ministry of Defence, and the governments of France and Finland have signed a series of agreements aimed at expanding industrial capacity in dual-use technologies and the defense sector, UATV English reports.

According to Ukraine’s Ministry of Defence, the agreements provide €343 million in European Union guarantees and blended finance grants. The documents were signed during the Ukraine Recovery Conference (URC2026) in Gdańsk.

The new financial instruments are expected to unlock more than €700 million in investments for the production of unmanned aerial systems, counter-drone technologies, ground robotic platforms, the aviation sector, advanced navigation and communications technologies, and other strategic industries.

The ministry emphasized that the investments are designed to support entire defense technology ecosystems rather than individual products.

The funding will be provided through the second pillar of the Ukraine Facility, specifically the Ukraine Investment Framework, which was established to attract both public and private investment. The framework has a total budget of €9.5 billion, including €7.8 billion in guarantees and €1.7 billion in blended finance grants.

Since autumn 2025, the investment framework has increasingly focused on dual-use technologies and other strategic industries.

In a separate development, Poland’s state-owned Bank Gospodarstwa Krajowego (BGK) and Ukrainian drone manufacturer Skyfall signed a memorandum of understanding to support investments aimed at expanding the company’s production capacity.

The Ministry of Defence said financing through the Ukraine Facility will help Skyfall meet growing demand while supporting the company’s integration into the European industrial and technological base.

The ministry also noted that it had previously launched a joint initiative with the European Commission to invest in innovative and breakthrough technologies through a separate financial program worth €161 million.