Automatically translated version. May contain inaccuracies compared to the original.
Ukrainian defense companies will be able to directly participate in European Defence Fund projects and compete for EU funding. At the same time, by the end of 2027, Ukraine will be exempt from paying its financial contribution to the fund. This was reported by Glavkom, citing an online meeting of the Verkhovna Rada Committee on Ukraine–EU Integration.
At the committee meeting, lawmakers supported a bill ratifying the agreement between Ukraine and the European Union on Ukraine’s participation in the European Defence Fund.
As explained during the meeting by Deputy Defense Minister of Ukraine Serhiy Boyev, after ratification, Ukrainian state and private defense companies will have the opportunity to join projects with European partners in the fields of research, development, and production of new defense technologies.
This concerns participation in fund competitions, applications for which are submitted by companies as part of consortia with European partners. According to Boyev, about four to five companies or consortia featuring Ukrainian businesses are considering submitting applications to open competitions.
The European Defence Fund was created to support joint research and design work in the defense sector, as well as the development of the EU’s defense-technological and industrial base. According to a Defense Ministry representative, this year approximately 2,5 billion euros have been allocated for the relevant fund competitions.
It is worth noting that the agreement provides for an annual financial contribution from Ukraine to the fund. However, a separate protocol provides for Ukraine’s exemption from payment due to exceptional circumstances caused by Russian aggression. “By the end of 27 there will be no contributions,” stated Deputy Finance Minister Yuriy Drahanchuk.
Thus, in the current budgetary period, Ukraine’s participation in the fund will not require additional expenditures from the state or local budgets.
Boyev also explained that the European Defence Fund currently operates within the EU’s multiannual financial framework for 2021–2027 years. It is expected that after this period the program will be extended in the next budget cycle.
Ukraine will become an associated state of the fund and will be able to participate in all of its activities. Currently, besides EU member states, Norway participates in the program as an associated country.
Incidentally, Ukrainian Prime Minister Serhiy Koretsky said that European partners should find a mechanism to use frozen Russian assets to support Ukraine, despite political and legal concerns of some countries.
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