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EU Approves $1.65B Defence Programme With $330M Support for Ukraine
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![Photo of Liubava Petriv]( "Photo of Liubava Petriv")
On December 8, the Council of the European Union formally adopted the European Defence Industry Programme (EDIP), completing the legislative process for a new initiative to strengthen Europe’s defense industry and accelerate cooperation with Ukraine, according to an official Council press release.
The €1.5 billion (approximately $1.65 billion) programme, covering 2025–2027, includes €300 million (around $330 million) for a dedicated Ukraine Support Instrument to modernise Ukraine’s defense industry and integrate it into the wider European defense ecosystem. Member states reached initial agreement on this funding in October 2025.
“The adoption of EDIP is a strategic investment in Europe’s security,” the Council noted. “It strengthens our industrial base and deepens our defense cooperation with Ukraine.”
Under EDIP, the EU will fund common defense procurement, increased manufacturing capacity for critical equipment, and collaborative industrial projects aimed at improving defense readiness. The regulation also introduces a new supply-chain framework to ensure security of supply and crisis response.
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To protect strategic interests, components from outside the EU, EEA and Ukraine may not exceed 35% of total component costs, and sourcing is banned from countries that conflict with EU security interests.
The regulation will be signed on 17 December 2025 and enter into force the following day, after approval by the European Parliament on 27 November and final adoption by the Council on 8 December.
Earlier, it was reported that the European Union is preparing a new $92.7 million defense support package for Ukraine funded by profits from frozen Russian assets. The payment is expected to be made at the start of 2026.
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