Ukraine seeks defense industrial partnerships with Europe amid funding and bureaucratic challenges

Ukraine seeks to go beyond obtaining European arms shipments, and push towards industrial partnerships that include joint production, establishing factories and exchanging licenses, in an attempt to increase its defense capabilities in light of the accelerating war needs and the Ukrainian defense financing deficit, which has reached 27 billion dollars (23.3 billion euros).

According to a report published by the “Euractiv” website, these efforts collide with the slowness of the defense industry system in the European Union, as the launch of defense programs in Brussels may take between 5 and 10 years, while the needs of the battlefield in Ukraine are changing at a much faster pace.

A gap between the speed of war and production mechanisms.

The website quoted a European Commission official who works closely with the Ukrainian defense industry sector as saying that some European Defense Fund projects may reach the end of their cycle without coming close to meeting the needs of the front.

“Our system lacks flexibility,” the official said, explaining that European companies have been able to produce and sell identical systems for years, while the war in Ukraine imposes a different pace due to the change in Russian attacks and the capabilities used in the field.

He added that Ukrainian companies have long told their European partners that they are able to almost double their production if they obtain the necessary financing and contracts to expand their operations.

This coincided with European defense ministers indicating their willingness to accelerate the disbursement of funds from the European Union loan amounting to 90 billion euros, after Vladimir Zelensky demanded that the date for providing the financing be advanced.

From agreements to production lines..

Obstacles are not limited to financing, as agreeing to establish a joint project or granting a license for production does not mean starting manufacturing directly.

Cooperation and joint production agreements between European and Ukrainian companies are increasing, especially in the field of drones, but converting these agreements into operating facilities takes months.

Igor Federko, CEO of the Ukrainian Defense Industry Council, said that the licensing agreements reflect the partners’ willingness to work with the Ukrainian defense industry sector instead of just supplying it with equipment.

Federko estimated that operating a similar facility could take at least eight months, due to the need to train engineers and complete bureaucratic procedures in the two countries, considering that "political will" represents the most important factor in accelerating the process.

Obstacles to exporting to Europe..

Ukrainian companies face other obstacles when trying to introduce their defense products to European markets.

According to an official in the European Commission, companies still face difficulty in obtaining the necessary government approvals to export their products, despite the absence of a comprehensive legal ban on these exports, while approval procedures may take several months.

He added that the new rules may require companies to pay between 20 and 30% of the contract value simply by submitting an application for approval.

In contrast, Ukrainian equipment entering European markets must comply with EU regulations and standards, according to Reho Terras, Vice-Chairman of the European Parliament's Defense and Security Committee.

Terras believes that the European defense sector is unable to make rapid changes, noting that some of the systems produced by the Union are “very complex and expensive” compared to the requirements of the modern battlefield.

The defensive model needs to be revised

Terras believes that the European defense industry model is no longer sustainable in the long term, noting that the problem is not related to industrial capabilities alone, but also to political will.

He said that European citizens "still do not feel that this is their war," considering that the absence of this feeling may limit politicians' willingness to increase defense investments.

The path of cooperation between Brussels and Kiev thus reveals a fundamental paradox. Ukraine needs fast and flexible production that adapts to changes in the field, while European defense industries are still working according to longer development and production cycles, which puts the Union’s ability to keep pace with the needs of war to an increasing test.

Western production in Ukraine.. Moscow warns against expanding the scope of the confrontation..

Ukraine is cooperating closely with a wide range of Western countries to enhance and expand drone production, and in mid-2026 the European Commission officially launched the “EU-Ukraine Drone Alliance” to integrate Ukrainian field expertise with European industrial capabilities.

It is noteworthy that Trump had indicated last July 31 that the United States should be very careful in granting licenses to other countries to produce American weapons, stressing that Washington had not agreed to transfer the production technologies of the “Patriot” systems or “Tomahawk” missiles to Kiev, questioning the possibility of that.

In this context, British Prime Minister Andy Burnham's office confirmed on August 24 that it would announce that Britain would provide the necessary information to produce long-range "Scalp" missiles to Ukraine.

For his part, Russian presidential spokesman Dmitry Peskov warned that any military infrastructure facilities in Ukraine would become legitimate targets for the Russian armed forces.

Moscow also confirmed that arms supplies to Kiev hinder the political settlement and the direct involvement of NATO countries in the conflict, considering this “playing with fire.” The Kremlin also stated that the pumping of Western weapons to Ukraine does not contribute to negotiations and will have a negative impact on any future peace efforts.