Mid-July 2026, at the EU–Ukraine Defence Industry Forum in Kyiv, Ukraine’s Minister of Defence Mykhailo Fedorov and the EU’s Commissioner for Defence and Space Andrius Kubilius signed two agreements that change what Ukrainian defence and dual-use companies can access. The first associates Ukraine to the European Defence Fund. The second establishes a Ukraine Support Instrument under the European Defence Industry Programme.

This sits alongside, and interacts with, the civil-side association covered in our earlier guides to EU funding for Ukraine. This article is about the defence and dual-use layer specifically: what each instrument actually funds, what a Ukrainian company or research organisation needs to do to use them, and how this connects to the dual-use routes already open through the EIC.

The two agreements, and what each one is

Both were signed the same week the EU also launched a wider EU–Ukraine Defence Industrial Partnership and announced joint drone and counter-drone production targets for the end of 2026. The agreements are not a standalone gesture — they sit inside a larger push to integrate Ukraine’s defence industrial base into the European one.

What EDF association actually means

Before this agreement, Ukrainian organisations could not be funded participants in EDF collaborative projects. Association changes that directly: Ukrainian entities can now join and be funded within EDF consortia rather than contributing informally or through separate bilateral channels.

Three things worth understanding about how EDF works, for an organisation approaching it for the first time:

• Consortium requirement. Similar in shape to Horizon Europe — generally at least three independent entities established in three different Member States or associated countries. Ukraine now sits inside that eligible group for defence purposes specifically.
• Funding rates differ from Horizon Europe. Research actions are funded at 100% of eligible costs. Development actions — design, prototyping, testing, qualification, certification — are funded at rates from 20% to 100% depending on the activity. This is not the flat-rate logic of a Horizon Europe grant, and budgeting for it needs separate attention.
• Security and ownership requirements are stricter than in civil programmes. Ownership, control and information-handling rules are more demanding, and they should be checked early rather than discovered during grant preparation.

The EU Defence Innovation Office in Kyiv

A practical detail that matters more than it sounds: the EU Defence Innovation Office (EUDIO) in Kyiv exists specifically to bridge Ukrainian and EU defence industries. It facilitates cooperation, supports the development of joint projects, and helps translate battlefield-proven Ukrainian technology into propositions that fit EU funding instruments.

For a Ukrainian company with no prior experience of EU grant mechanics, EUDIO is the practical starting point — closer to a translation function than a funding body, and free to engage with. It sits alongside the EUDIS Tech Alliance, launched in November 2025, which connects over 40 EU and Ukrainian defence firms working on drone and counter-drone technology, industrial production and R&D.

Where this connects to the civil side

This is not the only route into EU defence-adjacent funding open to Ukrainian organisations, and it should be read alongside two things already covered in this series.

• Ukraine’s association to Horizon Europe already covers all three pillars — unlike most non-European associated countries. Since June 2026 the EIC Accelerator and EIC STEP Scale Up also accept dual-use technology projects, which gives Ukrainian dual-use companies a civil-market route that does not require EDF eligibility at all.
• EDF cascade funding — small sub-grants distributed through already-funded EDF projects — is explicitly open to Ukrainian entities and is typically the lowest-barrier entry point for a company with no track record in defence-specific EU funding.

A Ukrainian dual-use company now has three genuinely different doors: the EIC for civil-market dual-use work, EDF for defence-specific collaborative R&D, and the Ukraine Support Instrument for industrial-scale production integration. Which one fits depends on whether the constraint is technology maturity, production capacity, or market orientation — not on eligibility, which is now settled across all three.

What to do now

1. Contact EUDIO before writing anything. It exists to make exactly this connection and costs nothing to engage with.
2. Establish which instrument fits your position: EDF for collaborative defence R&D, USI-EDIP for scaling production, or the EIC dual-use routes if your technology has a genuine civil market.
3. Register for a Participant Identification Code if you do not already have one from Horizon Europe participation — the same registration system applies.
4. Check the security and ownership requirements early. They are stricter than the civil programmes and are not the kind of thing to discover during grant preparation.
5. If your work is dual-use rather than defence-specific, read our guide to the EIC’s dual-use routes before assuming EDF is the only option — for a company with a real civil market, it may not be the right first door.
6. Watch for the ratification step. Ukrainian officials have indicated parliamentary ratification of the agreements is expected — worth confirming current status before relying on the framework for a specific submission.

How Nexuswelt works on this

Nexuswelt works across Horizon Europe, the European Defence Fund and dual-use routes, with presence in Munich, Cyprus and Ukraine. For Ukrainian organisations, the useful thing is a counterpart that can assess which of these instruments actually fits — EDF, EDIP, or the civil dual-use routes — and help position for whichever one does. Related reading: our guide to EU dual-use and defence funding for civil innovators and the complete guide to EU funding cooperation with Ukraine. More on the firm is on the Nexuswelt about page.

Frequently asked questions

What did Ukraine and the EU agree at the July 2026 Defence Industry Forum?

Two agreements: Ukraine’s association to the European Defence Fund (EDF), and a Financing Agreement under the European Defence Industry Programme (EDIP) establishing a Ukraine Support Instrument. They were signed by Ukraine’s Minister of Defence Mykhailo Fedorov and the EU’s Commissioner for Defence and Space Andrius Kubilius at the EU–Ukraine Defence Industry Forum in Kyiv.

What does EDF association mean for Ukrainian companies?

Ukrainian state-owned and private defence companies and research organisations can now join and be funded within EDF collaborative consortia alongside EU Member State partners, rather than participating informally or through separate bilateral arrangements. EDF’s budget for 2026 exceeds €1 billion, within a €7.3 billion envelope for 2021–2027.

What is the Ukraine Support Instrument?

A dedicated €300 million mechanism under the European Defence Industry Programme, aimed at modernising and integrating Ukraine’s defence industrial base — supporting joint production of ammunition, missiles and counter-drone systems, and supply chain integration with European manufacturers.

How are EDF projects funded, compared with Horizon Europe?

Research actions are funded at 100% of eligible costs, similar to Horizon Europe. Development actions — design, prototyping, testing, qualification and certification — are funded at rates from 20% to 100% depending on the activity, which is a materially different budgeting exercise from a flat-rate Horizon Europe grant.

What is the EU Defence Innovation Office in Kyiv?

EUDIO is an EU office based in Kyiv that bridges Ukrainian and EU defence industries, supports the development of joint projects, and helps translate Ukrainian battlefield-proven technology into propositions that fit EU funding instruments. It is free to engage with and a practical starting point for companies with no prior EU grant experience.

Can a Ukrainian dual-use company choose between EDF and Horizon Europe?

Often yes. Since June 2026 the EIC Accelerator and EIC STEP Scale Up accept dual-use technology projects, giving Ukrainian companies with genuine civil-market applications a route that does not require EDF eligibility. Which instrument fits depends on whether the constraint is technology maturity, production capacity, or market orientation.

Is cascade funding available to Ukrainian organisations under the EDF?

Yes. EDF cascade funding — small sub-grants distributed through already-funded EDF projects — is explicitly open to Ukrainian entities and is typically the most accessible entry point for a company with no prior track record in EU defence funding.

Do these agreements still need to be ratified?

Ukrainian officials have indicated that parliamentary ratification of the agreements with the European Commission is expected. Organisations relying on this framework for a specific submission should confirm current ratification status before applying.

Sources

• Ministry of Defence of Ukraine — Ukrainian defence companies to gain access to EU programmes and a €300 million defence industry support instrument
• European Commission, DG DEFIS — Support to Ukraine
• Zbroya.gov.ua — EU opens its programmes to Ukraine’s defence industry and launches €300 million support instrument
• ArmyInform — Ukrainian defense companies to gain access to EU programs and €300 million in grant funding
• Interfax-Ukraine — Ukrainian defense companies to get access to EU programs, EUR 300 mln in grant fundin

Accuracy note: a widely shared social summary of this announcement cited €260 million under “EDIP Industrial Reinforced Actions (IRA)”. Independent reporting, including Ukraine’s own Ministry of Defence, consistently states €300 million through the Ukraine Support Instrument. This article uses the figure corroborated across multiple independent sources. Verify against the official Financing Agreement text before citing a precise figure in any client-facing material.