The European Commission on Oct. 29 invited EU member states to submit proposals for €21.3 billion ($23.8 billion) in defence projects, urging them to prioritise cooperation with Ukraine, including joint procurement and addressing Kyiv's 'urgent needs' in air and missile defence, drones and ammunition.
The new call is part of the Security Action for Europe (SAFE) instrument, a 150 billion euro ($167.5 billion) loan facility freed up in May 2025 to help EU countries bolster defence and support Ukraine. Nineteen countries had previously submitted proposals for the loans, but the full amount was not taken up, largely because Italy and Hungary scaled down their borrowing, freeing the Commission to issue a second 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. Specifically, the Commission sees joint defence procurement with Ukraine and spending on "air and missile defense systems, drones and counter-drone systems, and ammunition and missiles" as eligible priorities.
The new call arrives amid accelerating EU-Ukraine defence collaboration. Among the spending plans already foreseen for the SAFE loans are plans for joint production with Ukraine, including a Bulgarian plan to co-produce drones. The EU has also launched a drone alliance with Ukraine and moved forward on five pan-European defence projects in which Ukraine is deeply embedded.
On the same day the Commission issued the call, Brussels hosted the annual defence and space conference organised by the consultancy Logos, where EU-Ukraine defence cooperation was a key topic. Panu Routila, CEO of Finnish defence manufacturer Patria, told the Kyiv Independent he is excited about a new joint venture with Ukrainian drone producer General Cherry, which he said would advance work 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,” Routila said.
Former Prime Minister and head of the Kyiv Security Forum Arseniy Yatsenyuk urged European defence manufacturers to lobby their governments. “Press your national governments to support Ukraine and to provide more,” Yatsenyuk told the Kyiv Independent, describing the situation as a win-win because financial support would allow Ukraine to continue procuring from European defence firms. The SAFE loans are a concrete line of funding through which national governments could boost financial support at low borrowing costs.
Analysis
Why This Matters
- The new funding call offers a concrete mechanism for EU countries to support Ukraine's defence at low borrowing costs, potentially accelerating delivery of critical systems.
- Deepening industrial integration (joint ventures, drone alliance) embeds Ukraine in Europe's defence supply chain, a strategic shift.
- The success of this call will test EU unity, given that Italy and Hungary previously reduced their borrowing.
Background
The EU has been a major supporter of Ukraine since Russia's full-scale invasion in February 2022, providing billions in financial, humanitarian and military aid. In May 2025, it created the Security Action for Europe (SAFE) instrument, offering 150 billion euros in favourable loans for defence spending and Ukraine support. The first tranche saw 19 countries submit proposals, but Italy and Hungary scaled back, leaving funds available for a second call. The Commission has also pursued initiatives such as a joint drone alliance and five pan-European defence projects.
Key Perspectives
- European Commission: Encourages member states to use the new call to strengthen cooperation with Ukraine, especially joint procurement and addressing Ukraine's urgent needs in air/missile defence, drones and ammunition.
- Arseniy Yatsenyuk (former PM, Kyiv Security Forum head): Urges European defence manufacturers to press their governments for more support, calling it a win-win that allows Ukraine to keep buying European equipment.
- Panu Routila (CEO, Patria): Sees new joint venture with General Cherry as promising for FPV drones and interceptors; Patria seeks "direct collaboration" with Ukrainian firms on emerging capabilities.
What to Watch
- How many member states submit proposals for the second call and whether they include joint procurement with Ukraine.
- Whether Italy or Hungary adjust their stance after the first tranche.
- Progress of the Patria-General Cherry joint venture and its output.
- Activation of the five pan-European defence projects involving Ukraine.
Checked
9 claims in this story checked against 1 source: 7 supported.
Show each claim
- Partly supportedThe Commission invited proposals for €21.3 billion in defence projects.Kyiv Independent: “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”
- SupportedThe Commission said plans should ideally prioritise Ukraine.Kyiv Independent: “the European Commission emphasized that those plans should ideally prioritize Ukraine.”
- SupportedSAFE is a €150 billion loan instrument freed up in May 2025.Kyiv Independent: “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”
- SupportedItaly and Hungary scaled down their borrowing plans, helping lead to the second call.Kyiv Independent: “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.”
- Partly supportedThe Commission sees joint procurement with Ukraine and spending on the listed capabilities as eligible priorities.Kyiv Independent: “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."”
- SupportedThe Commission press release said member states were encouraged to use the second-call funds to strengthen cooperation with Ukraine.Kyiv Independent: “"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.”
- SupportedRoutila said he was excited about a joint venture with General Cherry to advance work on FPV drones and interceptor technology.Kyiv Independent: “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.”
- SupportedRoutila said Patria is looking for “direct collaboration” with Ukrainian companies across “emerging capabilities.”Kyiv Independent: “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.”
- SupportedYatsenyuk told the Kyiv Independent, “Press your national governments to support Ukraine and to provide more.”Kyiv Independent: “"Press your national governments to support Ukraine and to provide more," Yatsenyuk said.”