The Ministry of Defence held a series of meetings with the DG DEFIS (Directorate-General for Defence Industry and Space) mission and the European External Action Service (EEAS) in Ukraine, where they discussed verification and control of funds under the Ukraine Support Loan, the Ministry of Defence press service said.
Defence funding priorities for 2027
Deputy Minister of Defence for European Integration Serhiy Boyev presented to partners the funding needs of the defence sector for 2027 and the priorities for directing international support. They specifically emphasised backing for the production of unmanned systems, including FPV drones, and for middle strike and deep strike capabilities.
It was stressed that resources need to be concentrated on areas where the role of technology on the battlefield is continuously increasing. Priorities should take into account both production capacity and the operational needs of the forces.
Integration of the defence-industrial complex into the EU
Deputy Minister of Defence Hanna Hvozdiyar presented the potential of the Ukrainian defence-industrial complex (OPK) and production priorities under the Ukraine Support Loan. They discussed implementation of the EU–Ukraine Defence Industrial Pact, the Drone Deal initiative and the creation of joint ventures.
“We are actively cooperating with European partners and are seeking concrete results for both sides. Joint production is the key to strengthening Ukraine’s defence capability today and to Europe’s security in the future,” Hvozdiyar emphasised.
Changes to procurement approaches and control
The issues of verification, accountability and procurement approaches were discussed by Deputy Minister Mstyslav Banik with the participation of the acting (t.v.o.) director of the Agency for Defence Procurement (AOZ), Artem Romanyukov, and the AOZ team. The Ministry and the AOZ plan to simplify the procurement system and reduce corruption risks.
“We see competition growing, the market widening, and substantial savings being achieved. Some tenders have already been successfully completed and deliveries to the forces have begun. In this way, the Ministry of Defence together with the AOZ is creating a simple system with zero tolerance for corruption and shadow schemes, while remaining open to our partners,” Banik said.
Control over spending within the Ukraine Support Loan
The Agency for Defence Procurement presented approaches to ensuring transparency and accountability, cooperation with anti-corruption bodies and the application of a risk‑based approach when vetting counterparties. They also plan to conduct audits at all stages of procurement.
“It is important to us that international partners have confidence in Ukraine’s defence procurement system. That is why we are strengthening control over all stages of procurement, introducing appropriate tools and carrying out audits so our partners can be assured that international support funds are being used effectively and transparently,” Artem Romanyukov said.
The press release also recalls that the Ukraine Support Loan envisages up to €90 billion for 2026–2027: almost €60 billion for defence and €30 billion for budget support. Ukraine has already received nearly €16 billion, the most recent tranche of €2.86 billion arrived in mid-October.
