The government has approved the procedure for allocating funds from the EU special loan to the defense industry: what the Ministry of Defense is saying
29 June 15:15
The government has approved the procedure for using European Union funds raised through a special loan to support Ukraine’s defense-industrial capabilities in 2026–2027.
This was announced by Ukrainian Prime Minister Yulia Svyrydenko, according to "Komersant Ukrainian".
“The government has approved the procedure for using European Union funds raised through a special loan to support Ukraine’s defense-industrial capabilities in 2026–2027. This will make it possible to allocate the funds raised from the EU toward the procurement of weapons, military hardware, and equipment for the needs of the Ukrainian armed forces,” she wrote.
European funds will be used not only to import weapons but also to directly finance contracts with Ukrainian manufacturers.
According to the head of government, procurements will be carried out, in particular, through international organizations in accordance with their procedures, which will expedite the delivery of critical components and finished weapons.
“Monitoring, oversight, auditing, and reporting will be implemented in accordance with European Union requirements, which will ensure the transparent and most effective use of the funds raised,” she added.
The agreement on the Ukraine Support Loan was signed and ratified in late May. This is a European Union loan facility of up to 90 billion euros, scheduled for the period 2026–2027. Of this amount, 60 billion euros will be allocated to Ukraine’s defense needs. The prime minister noted that 28.3 billion euros in defense support under the Ukraine Support Loan is expected as early as this year.
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Reaction from the Ministry of Defense
The Ministry of Defense explained that, thanks to the approved procedure, Ukrainian arms manufacturers will gain additional opportunities to expand production and fulfill contracts for the Defense Forces.
“These funds will be used as effectively and transparently as possible for our partners thanks to new approaches to supplying the Ukrainian military, which have already yielded positive results. We have achieved significant savings, diversified our supply chains, and ensured speed without compromising on quality,” said Mstislav Banik, Deputy Minister of Defense of Ukraine.
According to him, the main goal is to provide financial resources for the rapid and uninterrupted supply of critically important weapons to troops on the front lines.
Advantages of the New EU-Funded Procurement Mechanism
The new procedure offers a number of advantages:
- Direct support for the Ukrainian defense industry. European funds will be directed not only toward importing weapons but also toward directly financing contracts with Ukrainian manufacturers.
- Rapid international contracts. Procurements will be carried out, in particular, through international organizations in accordance with their procedures, which will speed up the delivery of critical components and finished weapons.
All of this will allow Ukrainian manufacturers to plan their work months in advance.
Control and reporting in accordance with EU standards
The document outlines the mechanisms for cooperation between the Ministry of Defense, other security and defense sector agencies, and the authorized bodies that will carry out the procurements.
“Our approach is based on data-driven decisions, minimizing the human factor, transparency, and anti-corruption controls. Tender procedures will be used where there is competition. In this way, even during wartime, we are building a system where every decision is explained, verified, and monitored. This is important both for our partners who support Ukraine in our struggle and for the entire Ukrainian people. But first and foremost—for the troops on the front lines, whose needs are our unquestionable priority in all decision-making,” Banik explained.
According to the Ministry of Defense, procurements will be carried out in accordance with the list of defense products that has received a positive assessment from the European Commission. The Commission will also have access to information and statements regarding the relevant accounts in accordance with the procedure established by the resolution.
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