EU prepares major defense projects with Ukraine
Photo: Ursula von der Leyen (Getty Images)
The European Union may allocate €10 billion in unused funds from the SAFE program to joint defense projects with Ukraine, European Commission spokesperson Thomas Regnier said at a briefing in Brussels.
According to him, the estimate of the remaining resources under the program is preliminary, but the amount represents significant financial support.
"We can count on at least 10 billion euros. That's the minimum we are having for now," Regnier said.
The final amount of available funds will depend on the finalization of the latest loans under SAFE. In particular, the final volume will be influenced by the ultimate settlement regarding the Hungarian plan.
How Ukrainian companies can participate
Ukraine will not receive these financial resources as a direct loan. The mechanism will follow the standard SAFE framework: EU member states will take on the loan obligations, while Ukrainian defense companies will be allowed to participate in joint procurement and production projects.
"Ukraine has been fully associated since day one, and we are speaking about the loans that have to be taken by our member states. But Ukrainian companies are, of course, fully associated and can benefit from that," the European Commission spokesperson explained.
The European Commission plans to use these remaining funds to finance new joint defense initiatives involving Ukrainian businesses.
Earlier, Poland was among the EU countries that were surprised by European Commission President Ursula von der Leyen's announcement that unused SAFE defense funds could be directed toward joint projects with Ukraine.
Warsaw had expected to use these funds to finance its own defense programs. According to a diplomat in Brussels, no prior consultations with member states had taken place regarding the decision.
