Ukraine is set to become a full member of the EU's defense industry support scheme, a move aimed at leveraging the country's expertise and bringing Kyiv closer to membership. The proposal for this project was prepared by the European Commission, reported by Euractiv.
One of the three objectives of the European Defence Industrial Programme (EDIP) proposal is to facilitate the restoration, reconstruction, and modernization of Ukraine's defense technological and industrial base, as well as its progressive integration into Europe. This is intended to promote mutual stability, security, peace, prosperity, and resilience.
To achieve this, Ukraine would be allowed to become a full member of any country consortium for joint military procurement alongside other EU member states, have access to EU funds, and be exempt from VAT in joint ownership.
The regulation of the European Defence Industrial Programme will be presented by the European Commission on Tuesday along with the comprehensive EU defense strategy.
Ukraine's accession to the European Defence Industrial Programme would be a significant step in shaping the continent's military-industrial complex, given Kyiv's experience in utilizing defense technology over the past two years and its process of joining the European Union.
Given Ukraine's significant demand for defense products, particularly ammunition and drones, Kyiv has been collaborating with EU member companies on establishing joint ventures, direct procurement from bloc enterprises, and developing large-scale drone production facilities. Two years of war have also provided the military with experience in testing and deploying modern weaponry.
According to the draft resolution, supporting the restoration, reconstruction, and modernization of Ukraine's defense technological and industrial base is a way to bolster the EU's defense capabilities and those of its member states.
Outside the EU, the bloc's industry faces challenges in accelerating production while awaiting contracts after decades of insufficient investment following the Cold War.
"Faced with a high-intensity conflict, Ukraine's defense technological and industrial base was compelled to transition to a military economy model," according to the draft defense strategy.
Collaboration between Ukrainian industry and Europe is a key aspect of security commitments discussed and proposed by the EU diplomatic service to Ukraine in an attempt to ensure that the bloc's industry increases production volumes to support military efforts.
"Ukraine is and will increasingly be a crucial partner for the EU in the defense-industrial sector, especially considering its ongoing accession process," the unpublished defense strategy text states.
The draft text also outlines a specific budget for the Ukrainian military-industrial complex. While the document does not specify the overall financial package, it is envisaged that its budget will be at least €1.5 billion.
