The European Union is beginning to deploy risk-sharing finance for Ukraine’s dual-use manufacturing sector, signalling that the support announced last year is moving into execution as investors assess opportunities in the country’s wartime economy.
“We are willing and motivated and to financially support Ukrainian companies, possibly in partnership with companies from elsewhere in Europe, to scale up their production of dual use technologies,” Lukas Veselý, a senior official in the Commission’s Ukraine task force, said Friday at a seminar in Oslo. "It's an upcoming, growing workstream of our activity."
Support for dual-use technologies, such as next-generation drone manufacturing, advanced navigation systems, aeronautical technologies, and key metallurgical capacities, will come via risk-financing through the Ukraine Investment Fund (UIF).
“By taking part of the risk, we hope to help companies scale up their production in Ukraine, possibly in partnership with companies from elsewhere in Europe,” Veselý said.
Support for dual use production expands on last year’s policy decision to include strategic industries under the EU’s Ukraine Investment Framework, which provides guarantees and blended finance to attract private capital. Veselý said the Commission is now actively engaging with Ukrainian banks, authorities and companies.
Half of partner financial institutions still reject dual use
However, he said many financial institutions that partner with the program are not yet working with manufacturers of dual-use goods.
"Probably half of the financial institutions that we work with are still uncomfortable with this area of activity, but we have quite a number of implementing partners who will be keen to finance it," he said. "So the Polish development bank, the Czech development bank, the Finnish export credit agency and several others will be will be quite interested."
He said that, beyond supporting manufacturers from their own countries, they would likely support others as well – "they will be quite open to being the financier of dual use investments in Ukraine."
He added that the European Investment Bank, a major partner, is "not yet there" when it comes to financing dual use projects.
"In Ukraine, they have been financing some passive protection measures of energy infrastructure, but ... they have not yet found the necessary consensus on financing Ukraine's dual use industry. It's an ongoing debate."
For the audio and a full AI-generated transcript of the meeting, click this link.
For the European Commission presentation materials, click below.
Metadata
- Title: Ukrainian Investment Framework (UIF) and the Reconstruction of Ukraine
- Organisers: Norad; Nansen Programme for Ukraine
- Lead Presenter: European Commission (DG ENEST)
- Date & Time: Friday, 22 January 2026 · 10:30–12:30 (CET)
- Format: Hybrid (in-person at Norad offices, Oslo + online stream)
- Audience: IFIs, donor agencies, private sector participants, Ukraine-focused investors and advisers
- Focus Areas: UIF instruments; guarantees and blended finance; risk-sharing (incl. war-risk insurance); private-sector mobilisation
