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Kyiv Showcases Armament Projects for SAFE – the EU’s €150 B-plus Defence Loan Facility

by Roman Cheplyk
Tuesday, July 1, 2025
2 MIN
Kyiv Showcases Armament Projects for SAFE – the EU’s €150 B-plus Defence Loan Facility

Drone, missile and ammunition lines top Ukraine’s pitch for long-term contracts and joint procurement under Europe’s new Security Action for Europe (SAFE) programme

What happened

  • Venue: meeting of EU defence-policy directors (Defence Readiness Task-Force)

  • Ukrainian delegate: First Deputy Defence Minister Serhii Boiev

  • Core pitch: package of industrial projects able to feed Ukraine’s front-line needs and plug critical EU capability gaps through 2030.

“Our proposal is dual-purpose: keep Ukraine armed today and expand Europe’s own production base tomorrow,”Serhii Boiev


Key Ukrainian project clusters

Cluster Indicative output (2026–2030) Partnership options
Unmanned aerial systems (UAV) • Loitering munitions
• Recon & EW-resilient drones
Joint assembly lines in UA + one EU state
Precision rockets & missiles • 150–300 km class systems
• Air-defence interceptors
Licensing with two EU member states
155 mm & 152 mm ammunition • Modular charges
• Smart-fuse shells
Public–private consortia with Baltic manufacturers

EU delegations signalled particular interest in the UAV and missile tracks.


How SAFE financing works (quick guide)

  • Budget envelope: up to €150 bn in long-term loans (Council decision, 27 May 2025).

  • Advance draw-down: up to 15 % of each loan for urgent orders.

  • Eligibility formula: at least two partners in every procurement, e.g.

    • two EU member states or

    • one member state + Ukraine or

    • member state + EEA/EFTA country.

  • European preference rule: ≥ 65 % of component value must originate in the EU, EEA/EFTA or Ukraine.

  • Disbursement window: through 2030; repayment over 45 years.

SAFE is designed to slash lead-times, back “Europe-first” supply chains and close critical capability gaps exposed by the war in Ukraine.


Next steps

  1. Submission of Ukraine-EU joint application outlining production sites, tech transfer plans and value-chain localisation.

  2. Council review – approval triggers initial disbursement.

  3. Mixed Commission to refine work-share, permit exchange and export-control alignment.

Boiev underlined that securing multi-year contracts will stabilise Ukraine’s defence-industrial workforce and dovetail with EU rearmament targets.

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