The EU has allocated 115 million euros for defense research and development projects involving Ukraine
The European Union has approved the new AGILE program, which allocates 115 million euros for the development of defense technologies. Not only European companies but also Ukrainian companies will be able to participate in the program. The program is designed to help turn promising developments into technologies that can be used by the military more quickly.
On October 12, 2026, the Council of the European Union finalized its approval of the AGILE program for flexible and rapid innovation in the defense sector. It provides financial support to companies developing new defense technologies. The program’s total budget is 115 million euros. Its main goal is to reduce the time between the emergence of a new idea, its testing, and its deployment in the military.
Small and medium-sized enterprises, startups, and companies actively developing their technologies will be eligible to participate. Importantly, the program is also open to Ukrainian businesses. Companies from the European Free Trade Association—Iceland, Liechtenstein, Norway, and Switzerland—will also be able to submit projects. This creates an additional opportunity for Ukrainian developers to secure European funding for defense solutions.
What the Funding Will Be Used For
The AGILE program will focus on developments that can significantly change approaches to defense or help respond more quickly to new threats. Among the areas identified by the European Commission are drones, artificial intelligence, and quantum technologies. Projects that help adapt civilian technologies to military needs will also be eligible for support. For example, these could be solutions originally created for other sectors but which can later be used for defense. Specific tasks for developers will be determined based on the current needs of EU member states.
The program includes two main areas of focus. The first is the development and testing of new defense products and technologies. The second is assistance with bringing them to market and implementing them in practical use. In other words, support will not be limited to creating a prototype or conducting laboratory testing. The initiative is designed to help promising solutions make the transition from development to real-world application. This is particularly important for small companies, which often lack the resources to independently turn a technology into a finished product.
How Much Funding Is Available
In total, AGILE plans to support between 20 and 30 projects. The program provides funding of up to 100% of eligible expenses that meet the established criteria. This means that individual companies will be able to receive full coverage of eligible development costs. At the same time, the maximum funding applies specifically to expenses that meet the program’s conditions, not to all of a company’s expenditures. Eligibility criteria and requirements for specific projects will be determined through competitive selection procedures.
Particular emphasis has been placed on the speed of decision-making. According to the European Commission’s plan, only four months should elapse between the submission of an application and the awarding of a grant. This is important for the defense sector, as technologies evolve rapidly, and military needs may arise well before the end of a typical funding cycle. In addition, the program will allow companies to claim certain expenses incurred even before the application deadline—for a period of up to three months. This approach should enable companies to continue development without having to pause while awaiting funding.
According to the program’s plan, the path from development funding to the implementation of the technology in the armed forces should take one to three years. This does not mean that every project will automatically be adopted by the military within this timeframe: the timeline will depend on the nature of the development, testing, and other conditions. However, the AGILE model itself is designed to shorten the usual path from idea to practical application. The EU aims to create conditions under which promising technologies will not remain at the experimental stage for long.
Why the European Union Is Launching This Program
One of the main reasons is Russia’s full-scale war against Ukraine. It has demonstrated how important it is to rapidly develop new technologies, test them in real-world conditions, and adapt solutions to the situation on the battlefield. Drones, autonomous systems, and artificial intelligence-based tools already play a significant role in modern warfare. Technological advantages can change rapidly, so multi-year development cycles do not always meet the military’s needs. AGILE is designed to address this very problem.
The European Commission emphasizes that Europe needs to learn to create, test, and implement new solutions in weeks or months, rather than years. This is particularly true for technologies that can provide a significant advantage on the battlefield or help make more efficient use of defense resources. The program is intended to complement existing instruments supporting the EU defense industry. Its key features include a focus on speed, flexible funding, and support for companies capable of rapidly delivering new solutions.
AGILE is also part of the European Union’s broader efforts to strengthen its own defense capabilities. The EU already has other mechanisms in place to support defense research and innovation, including the European Defense Fund and programs for startups and small businesses. However, as European institutions note, the existing tools are not sufficient to consistently and quickly turn new developments into ready-to-use solutions. Therefore, the new program was created to complement existing mechanisms, not to replace them.
When the program will begin
The European Commission presented a proposal to establish AGILE on March 25, 2026. In July, the European Parliament and the Council of the EU reached a preliminary political agreement on the program. On October 6, the European Parliament voted in favor of it, and on October 12, the Council of the EU finally approved the relevant regulation. Thus, the program was approved less than seven months after the European Commission first proposed its creation.
AGILE is scheduled to become fully operational on January 1, 2027. It is expected that the practical implementation of the program and the selection of projects in accordance with its terms will begin after its launch. Ukrainian companies working on defense-related developments should monitor the European Commission’s official announcements regarding calls for proposals, application requirements, and submission deadlines. The program’s approval opens the door for participation, but this in itself does not mean that grants will automatically be awarded to all applicants.
For the Ukrainian defense sector, AGILE could become an additional source of funding and an opportunity to take promising developments to the next level. Participation in the program can also help companies establish cooperation with European partners and adapt technologies to the needs of various armed forces. At the same time, the outcome will depend on whether projects meet the competition’s requirements and their ability to pass the selection process. The program’s main goal is to shorten the path from innovation to practical application and make defense technologies more accessible to those who need them.
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