As Russia’s full-scale invasion continues into its fourth year in Europe, Ukraine and the European Union are stepping up efforts to jointly build industrial resilience and defence capabilities. Ukraine’s growing dual-use industrial base is becoming a critical pillar for Europe’s security and economic competitiveness, producing flexible technologies, reliable manufacturing capacity, and combat-proven solutions. 

Investing now means accelerating defence innovation, opening up new markets, and building a resilient Europe that is ready to meet current and future threats. These issues were at the centre of today’s side-event panel discussion “Dual Use: Building an EU-Ukraine Industrial Partnership for Resilience and Defence” at the URC 2025 in Rome, organized by the European Commission in cooperation with the Kyiv School of Economics (KSE).

The session brought together companies and start-ups in the dual-use sector, European investors looking to expand their activities in dual-use and defence, policymakers, think tanks and international financial institutions to explore how dual-use industries can become a foundation for Europe’s long-term security and economic competitiveness.

“In today’s turbulent times, dual-use technologies are strategically important, and Ukraine plays a critical role in ensuring Europe’s security and resilience,” said Nataliia Shapoval, Head of the KSE Institute. “The dual-use solutions Ukraine developed under wartime pressure are a blueprint for the next generation of European innovations in the defence sector.”

Ukraine’s dual-use sector has grown exponentially since 2022, producing solutions from drones and secure communications to mobile repair units and EW tools, which are developed and deployed quickly, many of which are already in use on the battlefield.

Thanks to Ukraine’s unique innovation cycle, products move from idea to deployment in weeks, not years. This is made possible by ecosystems like Brave1 and Diia.City, which foster the development and scaling of solutions. These capabilities make Ukraine a key partner in strengthening European security, offering agile technologies, a manufacturing base, and solutions tested under wartime conditions.

One of the key topics of discussion was access to broader streams of international and European funding — in particular through instruments such as the Ukraine Investment Framework, the European Peace Facility, EDIRPA, ASAP, and the recently approved SAFE mechanism, which provides up to €150 billion in loans for joint defence procurement involving suppliers from the EU, EEA, or Ukraine. However, as participants stressed, “these instruments must meet real, bankable projects on the ground.”

The discussion also focused on a number of challenges facing Ukraine’s dual-use technology sector. A lack of standardization and insufficient regulation remain major barriers to broader cooperation between Ukrainian and international companies.

The session concluded with a presentation of innovations by Ukrainian manufacturers, followed by a discussion on potential partnerships and integration into EU supply chains. Representatives of European companies shared insights into financing mechanisms and the specifics of entering European markets. They also highlighted practical experiences that illustrate the current landscape and opportunities across EU markets. In addition, representatives of international financial institutions and development banks outlined options for capital mobilization and reducing investment risks.