Dual-Use Breakthrough: Ukraine Secures Over €140M in EU Investment Framework Funds

The EU is allocating more than €140 million to the development of Ukrainian dual-use technologies for the first time.

The Gaze reports on it, referring to The Ministry of Defence of Ukraine.

Deputy Minister of Defence of Ukraine Hanna Hvozdiar announced a significant expansion of the Ukraine Facility programme during her speech at the Rebuild Ukraine Expo in Warsaw. For the first time, it has become possible to allocate funds to support dual-use technologies that were not previously eligible for funding. 

This decision opens up access to financial resources in the amount of over €140 million that will be provided to Ukrainian companies in the form of loans and grants through the Ukraine Investment Framework.

The funding is intended to support manufacturers in strategically important industries. In particular, support will be available to companies working on the creation of modern navigation and communication systems, the development of new-generation drones, and the introduction of aerospace technologies and precision metallurgy. 

At a working meeting with representatives of the European Commission, practical issues related to the implementation of this instrument, potential funding volumes, and next steps were discussed. 

Hanna Hvozdiar emphasized that through these investments, Ukrainian companies will be able to scale up faster, attract private investment, and create products that directly strengthen the resilience of not only Ukraine but also Europe as a whole.

“Last year alone, more than 3,000 companies manufactured dual-use products worth €5.5 billion – and that is only part of the potential we are demonstrating to our partners today,” she noted.

Dual-use refers to innovations that have dual applications: both military and civilian. Historically, they began as commercial developments that were later adapted for the military. However, in Ukraine, the war has radically changed this vector: the military has become a fast and solvent customer, prioritizing the rapid implementation of military solutions that can then be transferred to the civilian sector.

The most promising Ukrainian developments are focused on autonomous systems. An example is Rovertech that created the Zmiy mine-clearing robot. This machine, which is critically important for the Defense Forces, may have significant civilian applications in the future in humanitarian demining and agricultural reconstruction.

At the same time, Russia actively uses dual-use technologies, importing civilian components such as microelectronics, chips, and high-precision machine tools from around the world to integrate them into its military equipment, thereby circumventing international sanctions. 

As The Gaze reported earlier, China has emerged as a crucial supplier of dual-use goods that directly sustain Moscow’s war machine, having exported more than $4 billion worth of dual-use items to Russia in 2024.

Read more on The Gaze: Why does China increase the supply of dual-use goods to Russia?