Briefing Paper “International Defence Procurement Agency”

15:11, 05.12.2025
card-img

The primary task for Ukraine and its partners is to build a robust deterrent by scaling up the military-industrial and technological base and establishing effective procurement mechanisms.

At the outset of the full-scale invasion, initial improvised logistics efforts were employed. These later evolved into structured, yet bureaucratic and slow, coordination formats (Ramstein, NATO NSATU). Within the NATO framework, partner priorities often diverge, and procurement decisions are shaped more by domestic political and industrial interests than by the urgent operational needs of Ukraine's front. Financial assistance in the form of grants is becoming less reliable, and existing resources are insufficient.

Ukraine possesses existing defence manufacturing capacities but lacks sufficient financial resources to fully utilise them. The EU has allocated €500 billion through the SAFE initiative (Security Action for Europe), but a low absorption capacity of these funds for Ukraine is expected because the EU has limited knowledge on how to effectively conduct procurement in Ukraine and cannot provide SAFE loans directly to Ukraine.

The International Defence Procurement Agency (IDPA) can be the solution to these problems. The Agency will strive to achieve a range of realistic objectives:

  • Streamlining procurement to ensure the timely delivery of essential defence articles to Ukraine. Subsequently—facilitating technology transfer, the acquisition of intellectual property, licenses, and defence assets.
  • Implementing transparent management and procurement mechanisms reinforced by independent audits and external oversight.
  • Effectively utilising additional financial resources, including revenues from frozen Russian assets, donor contributions, and innovative models, to maximize procurement capabilities.
  • Strengthening ties between the EU and Ukrainian defence industries, promoting localisation, technology transfer, public-private partnership, and other forms of mutually beneficial industrial cooperation.

The establishment of the IDPA is critically important for meeting Ukraine’s needs. There are three organisational options for the Agency: (1) a specialised unit within the European Defence Agency (EDA), (2) a new standalone company, and (3) a new Treaty-Based International Organisation.

The creation of a Treaty-Based International Organisation is the most strategic and sustainable option. It will ensure robust governance, comply with international law, and position Ukraine as a key partner in the European security architecture, laying the foundation for long-term integration and post-war reconstruction.