Brussels, 12 May 2025
Summary
Speaking at the EU–Ukraine Defence Industry Forum, EU Commissioner Andrius Kubilius underscored the critical role Ukraine’s defence industry must play in shaping Europe’s future security architecture. Drawing parallels to World War II, he reminded the audience that victory is not only achieved through armies but through industrial strength and innovation. Kubilius praised Ukraine’s rapid development of cutting-edge drone and AI-powered warfare, describing it as unmatched on the continent, and essential to European readiness in the face of future threats.
Kubilius emphasized that Europe must move from a model of military aid to one of industrial integration, calling it a “fusion” of EU scale and Ukrainian innovation. He highlighted Ukraine’s massive leap from €1 billion to €35 billion in defence production in just one year and noted the efficiency, speed, and cost-effectiveness of Ukrainian weapon manufacturing. European nations stand to benefit from lower costs and advanced technologies if they deepen partnerships with Ukrainian firms. As he put it, “twice the bang for your buck.”
He welcomed growing investments by European defence giants like Rheinmetall, Thales, and Saab in Ukraine, and stressed the need to scale up initiatives like EDIP and the Ukraine Support Instrument. A newly announced Joint EU–Ukraine Task Force will facilitate this integration, including joint procurement and addressing critical supply chain gaps such as nitrocellulose and drone engine components. Kubilius also pointed to the potential of SAFE loans—EU-backed credit instruments—as innovative financing tools to support Ukrainian industry.
Closing his speech, Kubilius argued that it is not Ukraine integrating into Europe’s defence ecosystem, but rather Europe needing Ukraine’s battlefield-tested experience. With an additional €800 billion in EU defence spending anticipated, he urged governments to spend strategically in and with Ukraine. Echoing history, he reminded the audience: “The West won the production war, and thus the real war. If we get the production right, all else will follow.”
Summary by Insight EU/ChatGPT
Speech at the European Union-Ukraine Defence Industry Forum
“Check against delivery”
Dear friends,
Good morning.
Last week we celebrated 80 years of victory in World War Two. On the 8th of May.
And today, what we need to remember, all of us here present, who work on Defence in the European Union and Member States, NATO and industry.
And my dear friends from Ukraine,
We all need to remember that victory in World War Two was not only a victory of armies. It was also a victory of factories. And the same is true today. Peace through strength will come from production power and brain power.
To stop Putin, we need to produce more. We need to innovate more. And we need to do that together – in the EU and with Ukraine.
Dear friends from Ukraine, ministers, leaders of the defence industry,
I am very glad you are here.
Last week we met with some of you in Kyiv.
And we not only celebrated the end of war. The next day, the 9th of May, we also celebrated the beginnings of European Unity 75 years ago with the Schuman declaration.
Soon, Ukraine will join our European family.
And already now we are joining together EU and Ukrainian defence industry. That is what the EU-Ukraine Defence Industry Forum is all about.
Stepping up support for Ukraine is a key priority of the White Paper on European Defence we presented last month.
Support for the defence of Ukraine with: ammunition, air defence, training and equipment and better access to our EU space assets.
The European Union and its Member States are the biggest supporters of Ukraine with 140 billion euro in aid during three years of the war, including nearly 50 billion euro in military aid.
But that’s only 0.1% of European GDP. It’s clear we can and need to do much more. And it’s not enough to spend more.
As President Von der Leyen said last week: “We need to move from a logic of aid – to a logic of integration of our defence industries”.
We need a fusion of EU scale and production capacity with Ukrainian energy, talent and ambition.
I often ask the rhetorical question: who is integrating with who?
Ukraine can benefit from EU production capacity and financial resources. And state of the art technologies: Armored platforms, fighter jets, air defence batteries.
But Ukraine’s industry is fast. Is modern. Is able to produce unique products.
That is why the EU will also benefit massively.
First from lower production costs. Ukraine produces excellent modern weapons. Quickly, at half the price they cost here.
So, for EU Member States it’s two, for the price of one.
Your advertising slogan could be: “twice the bang, for your buck”.
Second, the EU can learn from Ukraine’s surge in defence industry.
A real Big Bang from 1 billion euro production capacity in 2022 – to 35 billion euro production capacity last year.
A Big Bang of 35 times!!!
And third, we can learn from Ukraine’s innovative power.
The Ukrainian defence industry is young, dynamic, and the most innovative in Europe. Maybe even in the world.
And the successes of the Ukrainian defence industry are spectacular.
Last week in Ukraine I could see for myself. The spectacular work on drones and artificial intelligence. Learnt at an enormous cost on the battlefield. A cost that cannot be expressed in money. And for which we in the EU must be forever grateful, because Ukraine is defending Europe.
And in the future, when Europe will need to take the whole responsibility for the defence of Europe, Ukraine will be the most important part of the new European security architecture.
With Ukrainian battle tested armed forces. And with the Ukrainian defence industry, able to create modern defence industry platforms like BRAVE1. And Ukraine’s impressive “Drone Army”, with its totally unique digital management and bonus system. Targeting and approaching enemy targets in the “Uber way”.
Ukraine has a war statistic showing that they hit more than 80% of frontline targets with drones. Drones on both sides of the front line have created a 10 kilometre wide “death valley”, where nobody is able to move. Even with modern tanks.
That is what modern warfare looks like. That is how the wars of tomorrow will be fought.
And that experience among all of us only Ukrainians have.
We need to understand that in today’s world there are two powerful military forces, with the battle tested capabilities to fight a modern war of drones.
One “Army of drones” is defending Ukraine and at the same time – us.
Another “Army of drones”, which belongs to the aggressor, is preparing itself for aggression against an EU or NATO member state.
Let’s keep that in mind when we are discussing the need to integrate the Ukrainian defence industry with the European defence industry.
Who is going to integrate with who?
Who needs that integration more: Ukraine or Europe?
My answer – Europe!
Several Member States are already buying weapons in Ukraine, with Ukraine and for Ukraine. The Danish model: Investing in Ukraine’s defence industry to defend Ukraine. Sweden and Iceland have joined this initiative.
There is a need for Europeans not only to buy weapons from Ukraine and for Ukraine. There is a clear need for Europeans to buy technologies, know-how of production and of management systems from Ukraine for our own European defence industries.
In preparation for the possibility of Russian aggression against EU Member States, we cannot in advance procure millions of drones for our defence and keep them in our stockpiles.
Because they would become obsolete very quickly.
But we need to learn from Ukraine how to create a drones production and operation infrastructure. Which in the case of aggression would be able to immediately ramp-up production of drones. With the capability to permanently and urgently modernize, so the enemy cannot start to learn how to jam or intercept our drones.
It is good, that a lot of big European companies are investing directly into Ukraine. Rheinmetall to produce military vehicles, air defence, ammunition. Thales to produce radar, electronic warfare products. KNDS: maintenance and repair on tanks, guns, and vehicles. Nammo: artillery and mortar rounds. Polish Armaments Group is working with Ukraine. So are Saab and Leonardo.
The foundations are there. We now need to build on these foundations. Foundations like ASAP and EDIRPA.
Two massively successful programmes – to ramp up production and improve cooperation. ASAP boosted ammo production from 300,000 rounds in 2023 to an expected 2 million rounds in 2025. EDIRPA mobilized 11 billion euros of investment. 35 times the original 300 million euro we put in.
We’re now scaling up these successes and extending them to Ukraine – With the European Defence Industry Programme, EDIP. EDIP will provide grants for joint procurement. And EDIP’s Ukraine Support Instrument will provide grants for Ukrainian defence production.
We need to have the Ukraine Support Instrument in action, and with an ambitious budget – to support Ukraine. To support the integration of our defence industries.
Putin will not wait for us to agree on EDIP.
Member States now need to agree their negotiating position before the summer.
Today is an important day. Today we announce the creation of the inter-institutional EU – Ukraine Task Force. And today Ukrainian and European experts will convene for the very first meeting. To assist integration of our defence industries, to facilitate development of joint projects or joint procurement processes.
I hope that this Joint Task Force will bring new energy into our cooperation. And will help us to implement important provisions of the White Paper.
As I understood from our dialogue – both with Ukrainian and European defence industries – one of the major challenges, which very much unites perhaps everybody, who is in this room – is the issue of security of supply chains.
Let’s deal with this challenge by uniting our efforts – let’s look who among us is ready to expand production of nitrocellulose or explosives. And who is going to ramp-up production of small engines, which are used by drones.
Let me also stress, that we’re proud of the EU Defence Innovation Office. Which is now up and running in Kyiv. And has ambitious activities planned for this year. To share expertise – for example on unmanned systems. To support research and development. On military and dual use. To support projects on ‘future soldier systems’ and drone-based mass munitions.
We want to do even more. And increase resources and activities of the EU Defence Innovation office.
And big money is coming for defence. Up to 800 billion euro extra for defence in the next 4 years. Already twelve Member States asked to activate the national escape clause of the Stability and Growth Pact. We expect more to follow.
And to those Member States: I encourage you to spend that extra money in Ukraine and for Ukraine.
And Ukraine can also benefit from the 150 billion euro in SAFE loans – very attractive, Triple A loans backed by the EU budget – by teaming up with Member States, the Ukrainian defence industry can fully take part as contractors or subcontractors; By teaming up with member states taking “SAFE” loans in order to increase our support to Ukraine.
Let’s look for new inventive financial solutions on both sides in order to use “SAFE” for the safety of Ukraine, which means for the safety of Europe.
I call on all of you here today: make the most of these opportunities.
Dear friends,
On the integration of defence industries I asked: who integrates with who?
And the answer is: we both bring our best to the table.
80 years ago, the West won the production war.
And because it won the production war, it also won the real war.
If we get the production right, all else will follow.
So let’s get it right! Together!
Thank you and Slava Ukraini!
Source – EU Commission