Ukrainian companies will be able to participate in EU-funded defence research and development projects under a provisional agreement reached by negotiators from EU member states and the European Parliament.

The Danish EU Council presidency stated that the agreement links Ukraine to the European Defence Fund, which aims to enhance the competitiveness, efficiency, and innovation of the European Union’s defence sector.

The fund has a budget of around €9.5 billion ($10.9 billion) for the period 2021–2027.

According to the Danish presidency, negotiators also agreed to expand and simplify the use of EU budget funds for defence-related research and development, as well as for investments in industrial capacity and infrastructure.

To do so, several existing EU programmes, including Horizon Europe, are to be amended.

The move comes amid growing security concerns over Russia.

Intelligence assessments suggest that Russia could be militarily capable of launching another war as early as 2030.

Danish European affairs minister Marie Bjerre said the agreement sent a “strong message” that Europe was determined to invest in its security and remove obstacles along the way.

By opening key EU programmes to defence-related investments, she said, the EU was strengthening efforts to support Europe’s defence and technology industry.

“It is a necessary step towards a stronger, more resilient, and more capable Europe that can defend itself by 2030,” Ms Bjerre said.

(dpa/NAN)