Strategic discussions on how Ukrainian business is shaping the future of defense and investment policy. On December 8 and 9, the team of the Union of Ukrainian Entrepreneurs (SUP), along with its member companies, participated in two key roundtables organized by the Center for International Private Enterprise (CIPE) in partnership with the US-Ukraine Business Council (USUBC) and the CELIS Institute. The events gathered representatives from government, business, and international organizations to collectively discuss how Ukraine is building economic resilience during the war and preparing for post-war development.
DEFENSE TECHNOLOGIES AND EXPORT AFTER THE WAR: NEW OPPORTUNITIES FOR UKRAINE
The first roundtable focused on the prospects for defense technologies, the development of critical innovations, and how business and the state can effectively cooperate in the defense industry. Special attention was paid to issues of coordination, transparency, and the private sector’s role in shaping policies.
One of the key highlights was the news about Ukraine’s access to the European Defence Fund (EDF) – a fund that finances collaborative research and development in the defense sector.
“The total EDF budget for 2021-2027 is €7.3 billion (€2.7 billion for research, €5.3 billion for development). Ukraine will be able to join the program by the end of 2025,” announced Kateryna Glazkova, Executive Director of SUP, citing Marie-Agnes Strack-Zimmermann, Chair of the European Parliament’s Subcommittee on Security and Defence, during a meeting in Brussels.
What this means for ukrainian business
Access to the EDF means the opportunity to participate in tenders and receive previously inaccessible funding. For example, Ukrainian companies can apply for a grant with a budget of up to €25 million for the creation of underwater robotic platforms.
In parallel with the EDF, a new program – the European Defence Industry Programme (EDIP) – has been launched with a budget of €1.5 billion for 2025-2027. Within its framework, a separate instrument for Ukraine, the Ukraine Support Instrument (USI), has been created with a volume of €300 million and the possibility of procuring defense products manufactured in Ukraine.
The rule of origin – requiring 65% of components to be produced in the EU or associated countries – gives Ukrainian manufacturers a competitive edge and facilitates integration into European supply chains. EDF and EDIP will operate in parallel until 2027, opening access to the full spectrum of support, from research to production scaling.
Why Ukrainian manufacturers have unique advantages
Ukraine is the only country in Europe where defense technologies undergo a full testing cycle in the real conditions of modern warfare. This creates several strong competitive advantages:
- Combat-proven technologies that demonstrate effectiveness on the battlefield and are rapidly improved.
- Incredible production flexibility, where the cycle “request – prototype – product” takes only a few weeks.
- Deep knowledge of enemy equipment, thanks to access to captured equipment and the ability to analyze the weak points of Russian systems.
Ultimately, a “window of opportunity” is opening for Ukrainian business: from research and prototyping to serial production and full integration into the European defense market.
INVESTMENT SCREENING: BALANCING SECURITY AND ATTRACTIVENESS
The second roundtable on December 9 was dedicated to investment screening. CELIS presented the results of a study on risks and approaches to controlling foreign investment. Participants discussed how implementing an FDI screening system can protect critically important sectors while simultaneously not deterring investment.
Why is this important?
Ukraine is seeking a balance: to protect the state, yet not scare away investors. Screening is needed, but it must be fast, transparent, and predictable.
In wartime, economic security has become a matter of national survival, so Ukraine is adopting a European approach to investment verification to shield strategically important sectors from risky capital. This is not a barrier to business, but a tool for predictability and trust.
“Entrepreneurs emphasize the need for clear deadlines for reviewing agreements, transparent evaluation criteria, the possibility of preliminary consultations, and guarantees that the system will not become a breeding ground for corruption or abuse,” said Kateryna Glazkova.
For the state, investment screening means integration into the European investment control system, strengthening the protection of critical sectors, increasing investor confidence, and filtering out non-bona fide capital. However, the system will only be effective under conditions of strong institutions, independent courts, and zero tolerance for corruption.
The draft law on foreign direct investment screening No. 14062 is only the first step in this direction. Further implementation requires quality execution, strong institutions, and zero tolerance for corruption. Only then will screening become a tool for development, not a hindrance.
We thank our partners: CIPE, USUBC, and CELIS for the invitation, the professional discussion, and the systemic work aimed at strengthening Ukraine’s economic resilience. Business participation in such events is paramount, as it allows for the development of realistic solutions, the formation of a strong Ukrainian position in international markets, and the building of an economy resilient to the challenges of war and future reconstruction.