'Now is a good time to invest in Ukraine' — Brussels and Kyiv sign over $1 billion in deals
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Ukraine and the European Union signed over 1 billion euros in deals, as Kyiv and Brussels move to more tightly interweave their economies.
EU institutions and investment banks signed agreements on loans, guarantees, and grants across a range of sectors at the EU-Ukraine Business Summit held in Brussels on April 22–23.
The deals come as the EU finalizes a massive 90-billion-euro ($105 billion) EU loan to Kyiv, agreed by European countries in December and likely to be approved on April 23, after outgoing Hungarian Prime Minister dropped his opposition to the loan.
The loan will allocate an unprecedented sum of 60 billion euros ($70 billion) to Ukraine's defense, and is widely perceived to signal the closer integration of Ukraine's military industrial base with the European Union's.
The deals signed during the conference include a declaration of cooperation between the EU and Ukraine's Defense Ministry. The EU will provide 161 million euros in guarantees and grants, aimed at unlocking up to 400 million euros ($470 million) in investments in emerging and disruptive technologies.
"It's a really significant step because it marks a significant (change) in the way the European Union financially supports Ukraine," Gert-Jan Koopman, the EU's top civil servant for enlargement, said during the signing ceremony on April 23.
"This isn't support for what we normally do (...) but is support for industries which are vital for the security of Ukraine and the EU," he added.
Drones, space technologies, and components for military goods are all potential targets for the funding, Koopman said.
Until Russia began its full-scale invasion of Ukraine, the EU had shied away from funding weapons and other technology with a lethal application.
Since then, the EU has increasingly moved into this space, starting with repurposing the European Peace Facility to fund weapons deliveries to Ukraine, and in 2026 is expected to spend over $235 billion on defense.
Two joint ventures between EU and Ukrainian defense companies were signed at the conference, backed by European funds.
French company Shark Robotics signed a deal with Tencore in drones, and Danish company Gomspace signed a deal with Stetman to launch nanosatellites into space.
Despite the incoming funds, Ukraine is still short of over $20 billion needed for its defense in 2026, according to a document seen by the Kyiv Independent.
Other deals signed during the conference include over 500 million euros ($580 million) in new funding to support urgent reconstruction projects in Ukraine from the European Investment Bank.
Another deal with the European Bank for Reconstruction and Development will provide over 360 million euros ($420 million) to small and medium Ukrainian enterprises, seeking to crowd in an additional investment of up to $3.4 billion.
Ukraine will need almost $600 billion to rebuild its economy, according to the latest estimates from the World Bank. The country also heavily relies on financing from abroad to fund its military and keep state services running.
"Now is a good time to invest in Ukraine," said European Commissioner for Enlargement Marta Kos in a press release on April 22.
"It is becoming one of the most strategic investment destinations in Europe. Innovative, full of potential, and ever more central to Europe's future. Cooperation between EU and Ukrainian companies also lays the foundation for more European sovereignty in critical technology sectors," she added.
