On May 27, the Council of the European Union adopted a regulation establishing the Security Initiative for Europe (SAFE) instrument. This is a new EU financial instrument that provides for the possibility of borrowing up to €150 billion for investments in the defense industry of member states.
This is stated on the website of the Council of the EU.
SAFE will finance urgent and large-scale investments in the European Defence Technological and Industrial Base (EDTIB). Its aim is to increase production capacity, ensure the availability of defence equipment when needed and close existing capability gaps — ultimately to strengthen the EUʼs overall defence preparedness.
In addition, SAFE will allow the EU to continue to support Ukraine by involving its defense industry in the instrument from the very beginning.
Through the SAFE instrument, the EU will provide up to €150 billion, to be distributed at the request of interested Member States based on their national plans. Disbursements will be made in the form of long-term loans at competitive rates, to be repaid by the beneficiary countries.
Activities to be funded under SAFE will be divided into two categories of defense products:
- Category 1. Ammunition and missiles; artillery systems; ground combat capabilities and their supporting systems, including soldier equipment and small arms; critical infrastructure protection; cybersecurity; military mobility, including countermobility.
- Category 2. Air and missile defense systems; surface and underwater maritime capabilities; drones and anti-drone systems; strategic capabilities, including but not limited to strategic airlift, aerial refueling, C4ISTAR systems, as well as space assets and services; space asset protection; artificial intelligence and electronic warfare.
Defense products falling under Category 2 will be subject to stricter eligibility conditions, which require contractors to have the ability to independently define, adapt, and evolve the design of the purchased defense product.
Participation of Ukraine and other countries in the program
SAFE also envisages cooperation with third countries. Ukraine and the EEA-EFTA (European Economic Area and European Free Trade Association) countries will receive the same status as EU member states. They will be able not only to participate in joint procurement, but also to sell their defense industry products.
SAFE will also allow accession countries, candidates, potential candidates, as well as states that have concluded security and defense partnership agreements with the EU — for example, the United Kingdom — to join joint procurement.
In addition, SAFE provides for the possibility of concluding additional bilateral or multilateral agreements with such third countries that would allow for expanding the conditions for eligibility for participation.
Ukrainian Defense Minister Rustem Umerov previously called on partners to prioritize purchases from the Ukrainian defense industry. This includes, in particular, UAVs and 155-mm ammunition.
Ukraine is also open to cooperation in other critical areas: artillery systems, air defense, and electronic warfare.
For more news and in-depth stories from Ukraine, please follow us on X.