Ukrainian defence manufacturers will gain additional opportunities to expand production and fulfil contracts for the Defence Forces of Ukraine.

The Government has approved the procedure for using European Union funds provided under the Ukraine Support Loan, a special loan supporting Ukraine’s defence industrial capacity in 2026–2027.

This will enable the use of EU funds to procure weapons, military vehicles and equipment, and other assets for the Armed Forces of Ukraine.

The document establishes coordination mechanisms between the Ministry of Defence of Ukraine, other security and defence sector bodies, and authorised procurement entities.

The framework also introduces monitoring, oversight, auditing, and reporting in line with European Union requirements to ensure the transparent and efficient use of the funds.

Procurement will be carried out in accordance with the list of defence products that has received a positive assessment from the European Commission.  The Commission will also have access to information and extracts relating to the relevant accounts, in accordance with the procedure set out in the resolution.

The Ukraine Support Loan agreement was signed and ratified at the end of May.

This loan instrument provides up to €90 billion in European Union lending for 2026–2027, including €60 billion allocated to Ukraine’s defence needs.

This year alone, €28.3 billion in defence support is expected to be provided under the Ukraine Support Loan.