EU Launches $1.7B Defense Program to Boost Weapons Output With Ukraine

The European Commission approved a $1.7 billion defense industry program to expand production across Europe and strengthen cooperation with Ukraine, the European Commission announced on March 30.

The funding is aimed at boosting manufacturing capacity, accelerating technological development, and tying Ukrainian defense companies more closely into Europe’s industrial base.

The program covers the 2025–2027 period and is part of the EU’s broader push to scale up defense output after Russia’s full-scale invasion of Ukraine.

Boosting defense production

Of the total, about $803.9 million will go toward expanding production of key defense components and finished systems, including ammunition, missiles, and counter-drone capabilities.

Within that amount, around $298.6 million is earmarked for joint EU-Ukraine projects meant to increase production capacity in both Ukraine and Europe.

Joint projects and procurement

Another $373.2 million is allocated for joint defense projects involving EU states, Ukraine, and Norway.

A further $275.6 million is set aside for joint procurement of military equipment, including air and missile defense, anti-drone systems, and land and naval platforms.

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Support for defense companies and innovation

Small and medium-sized defense firms will receive about $114.8 million, while another $40.5 million will go to BraveTech EU to support new battlefield technologies developed by Ukrainian and European companies.

The program also aligns with a parallel push to channel that cooperation into joint NATO-Ukrainian defense innovation projects.

The next stage centers on joint NATO-Ukrainian teams competing for about $11.4 million, with contracts focused on anti-drone systems and air defense projects under the UNITE-Brave framework.

A dedicated portal is now live through Brave1 , allowing companies from Ukraine and NATO member states to register ahead of a spring call for proposals under standard NATO procurement rules.

The contracts will be managed by the NATO Communications and Information Agency with Ukrainian participation, as organizers prepare for the NATO-Ukraine Defense Innovators Forum in Vilnius on June 1-2.

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