EU frees up over 20 billion euros to potentially help Ukraine's defense

BRUSSELS, Belgium — EU countries were invited to pitch 20 billion euros' ($22 billion) worth of defense projects on Oct. 29, and the European Commission emphasized that those plans should ideally prioritize Ukraine.

The 21.3 billion euros ($23.8 billion) on the table is part of the Security Action for Europe (SAFE) instrument, which includes 150 billion euros ($167.5 billion) in favorable loans freed up in May 2025 that EU countries can draw on to help them beef up their defense and support to Ukraine.

The scheme proved quite successful, with 19 countries submitting proposals for the loans.

However, the full 150 billion euros was not used, chiefly because Italy and Hungary scaled down their borrowing plans, allowing the Commission to issue its new call.

"Along with their needs and national defense priorities, member states are also encouraged to use the funds from this second call to strengthen cooperation with Ukraine," a European Commission press release reads.

For the Commission, that means EU countries engaging in joint defense procurement with Ukraine and spending to address Ukraine's "urgent needs," for example, in "air and missile defense systems, drones and counter-drone systems, and ammunition and missiles."

That new call for submissions also comes as Ukraine-EU defense cooperation has gained momentum.

Among the spending plans already foreseen for the SAFE loans are many plans for joint production with Ukraine, even for countries seen as less pro-Ukraine in the bloc, such as Bulgaria, which has a plan to co-produce drones.

The EU has since then also launched its EU-Ukraine drone alliance, which brings together manufacturers from both sides to deepen cooperation, and the bloc has moved forward on five pan-continental defense projects, in which Ukraine has been deeply embedded.

The same day the European Commission issued the new call for SAFE proposals, EU-Ukraine defense cooperation was a key topic at Brussels' annual defense and space conference, organized by the consultancy Logos.

Panu Routila, CEO of Finnish defense manufacturer Patria, told the Kyiv Independent he is excited about a new joint venture between his company and Ukrainian drone producer General Cherry.

For Routila, the cooperation will allow the two companies to advance together on first-person view (FPV) drones and interceptor technology.

Patria is now looking for "direct collaboration" with Ukrainian companies across a range of "emerging capabilities," following that first positive collaboration, Routila told the Kyiv Independent.

Former Prime Minister and head of the Kyiv Security Forum Arseniy Yatsenyuk told the Kyiv Independent at the same event that his message for defense manufacturers in Europe is simple.

"Press your national governments to support Ukraine and to provide more," Yatsenyuk said.

He characterized the situation as a win-win, because if countries provide financial support to Ukraine, it can continue to procure from European defense manufacturers.

The SAFE loans are a concrete line of funding through which national governments could boost financial support at low borrowing costs.