Integrating Ukraine’s defense industry into the EU ecosystem: does the SAFE initiative facilitate this?

The European Union’s SAFE (Security Action for Europe) financial mechanism, within the framework of the ReArm Europe / Readiness 2030 plan, is intended to help strengthen Europe’s defense policy and stimulate military procurement.

In 2025, the European Commission presented a plan to strengthen the defense of EU member states. Its goal is to significantly enhance Europe’s collective defense capability by 2030 by increasing funding, stimulating the European defense industry, improving coordination of procurement, enhancing weapons interoperability, and building a credible deterrence capacity amid growing geopolitical tensions, particularly against the backdrop of the war in Ukraine.

As part of this strategy, the EU created the SAFE financial instrument — a program that provides long-term loans on favorable terms to states willing to invest in the EU’s defense industrial base through joint procurement.

The total volume of SAFE resources is up to €150 billion.

How is Ukraine involved in this mechanism, and can Ukraine expect the integration of its defense industry into the European ecosystem?

What is the goal of the SAFE mechanism?

SAFE is designed to accelerate and scale up investments in Europe’s critical defense capabilities. In particular, the program aims to close gaps in production capacity, including the ability to manufacture ammunition, weapons, air defense systems, as well as naval, land, air, cyber, and other types of defense products.

Key conditions: procurement must be carried out by at least two states (or by a state together with a partner country, such as Ukraine) in order to ensure economies of scale, standardization, and interoperability.

In light of urgent needs, procurement by a single state is allowed during a transitional period.

How Ukraine can participate in SAFE

According to the documents, partner countries — including Ukraine — can be involved in joint procurement on equal terms with EU member states.

At the same time, SAFE loans are not provided directly to Ukraine, but to EU member states that assume the obligations. Ukraine may participate as a supplier of defense products or as a partner in projects.

In 2025, 19 EU member states developed and submitted so-called “national investment plans” for participation in SAFE, including countries that have already expressed readiness to implement joint projects with Ukraine.

Thanks to participation in the EU mechanism, Ukrainian companies will be able to become official suppliers under joint contracts with the European Union, while EU member states will be able to procure products from Ukraine’s defense industry using SAFE funds.

Ukraine has already offered its capabilities in the production of ammunition, FPV drones, long-range strike drones, and, in particular, various types of missiles.

In effect, SAFE has become the first EU instrument to create a formal framework for the economic integration of Ukraine’s defense industry into the European defense system.

***

SAFE is a major EU investment step that creates a new opportunity for Ukraine: not just to receive military assistance, but to become part of the European defense industrial system.

SAFE is a chance for Europe and Ukraine to jointly strengthen defense readiness in response to new challenges.