Changes from plenary report to adopted text

RemovedThere shall be no unauthorised access by a third country, or other third-country entity to classified information relating to the carrying out of the action and potential negative effects over security of supply of inputs critical to the action shall be avoided.

RemovedThe costs related to those activities shall not be eligible for support from the Programme.

Removed7. Paragraphs 2 to 6 shall not apply to:

Removed(a) contracting authorities of Member States and Ukraine;

Removed(b) International Organisations;

Removed(c) The Structures for European Armament Programme;

Removed(d) The European Defence Agency.

RemovedEligible actions

Removed1. Actions eligible for funding under the Ukraine Support Instrument shall implement the objectives set out in Article 4 and may take one of the following forms, or a combination thereof:

Removed(a) common procurement actions as referred to in Article 12, including for the establishment and maintenance of Defence Industrial Readiness Pools as referred to in Article 21g;

Removed(b) industrial reinforcement actions as referred to in Article 13;

Removed(c) supporting actions as referred to in Article 13a.

Removed1a. The following actions shall not be eligible for funding under the Ukraine Support Instrument:

Removed(a) actions related to goods and services which are prohibited by applicable international law;

Removed(b) actions related to lethal autonomous weapons without the possibility of meaningful human control over selection and engagement decisions when carrying out strikes against humans.

Removed(c) actions related to goods or services which are subject to control or restriction by third countries other than Ukraine or by third-country entities other than Ukrainian ones, directly, or indirectly through one or more intermediate legal entities, including in terms of technology transfer;

Removed(ca) actions related to defence products for which the design authority, as defined in Article 2, is not an eligible entity as set forth in Article 21(2);

Removed(d) actions or parts thereof, that are already fully financed from other public or private sources;

Removed(da) actions which include sourcing from third countries other than Ukraine that contravene the security and defence interests of the Union or its Member States or of Ukraine, including respect for the principle of good neighbourly relations.

Removed3. The cost of components originating in the Union or in Ukraine shall not be lower than 70 % of the estimated value of the end product.

Removed4. Actions eligible for funding under the Ukraine Support Instrument shall be carried out by or with at least Ukraine or one legal entity established and having its executive management structure in Ukraine.

Removed5. References to Member States in Articles 12, 13, 13a and 13b shall be understood to include Ukraine for the purpose of this chapter. References to associated countries in Articles 12, 13, 13a and 13b shall not apply to this Chapter. For the purposes of this chapter, references to Article 10 contained in Article 12 shall be understood to refer to Article 21.

RemovedAward criteria

Removed1. Proposals shall be assessed in the light of the objectives set for the action, as referred to in Article 19a, the expected results and the quality and efficiency of the implementation.

Removed2. In addition to the criteria set out in paragraph 1, proposals for common procurement actions of the Ukraine Support Instrument referred to in Article 12 may be evaluated based on one or more of the following criteria:

Removed(a) the estimated value of the common procurement;

Removed(b) contribution to recovery, reconstruction and modernisation of the Ukraine DTIB;

Removed(c) contribution to the acceleration of the procurement and the reduction of the production and delivery lead times of defence products for Ukraine.

Removed3. In addition to the criteria set out in paragraph 1, proposals for industrial reinforcement actions of the Ukraine Support Instrument referred to in Article 13 may be evaluated based on one or more of the following criteria:

Removed(a) reduction of production lead time and increase in production capacity in Ukraine;

Removed(b) contribution to ensuring timely availability and supply of defence products throughout Ukraine;

Removed(c) contribution to cross-border defence industrial cooperation between Ukraine and the Union.

Removed4. Proposals for actions shall take into account the future integration for Ukrainians DTIB into the EDTIB, thereby contributing to mutual stability, security, peace, prosperity and sustainability.

Removed5. The work programme shall lay down further details concerning the application of the award criteria laid down in paragraph 1, including any weighting to be applied. The work programme shall not set individual thresholds.

RemovedWork programmes

Removed1. The Ukraine Support Instrument shall be implemented by work programmes as referred to in Article 110 of the Financial Regulation. Work programmes may be multiannual, when appropriate. Work programmes shall set out the actions and associated budget required to meet the objectives of the Ukraine Support Instrument.

Removed1a. The work programmes of the Ukraine Support Instrument shall be developed in close cooperation with representatives of Ukraine and targeted to support both the EDTIB and the Ukrainian DTIB in fulfilling Ukraine’s capability needs.

Removed2. The Commission shall adopt work programmes by means of implementing acts. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 58(3).

Removed3. The Commission shall take into account the coherence between different relevant instruments.

Removed4. The conditions included in Article 18(2a) for the work programmes of the Programme shall apply to the work programmes of the Ukraine Support Instrument, mutatis mutanda.

RemovedUnion financial contribution

Removed1. Whenever the Union contribution takes the form of grants, pursuant to Article 193(3) of the Financial Regulation, the Ukraine Support Instrument may finance up to 100 % of the eligible costs for actions referred to in Article 21a(1), points (b) and (c).

Removed2. Where the Union grant takes the form of financing not linked to costs, the level of Union contribution to each action may be based on factors such as:

Removed(a) the degree of complexity of the common procurement, for which a proportion of the estimated value of the action and the experience gained in similar actions may serve as an initial proxy;

Removed(b) the contribution of the action to improving interoperability outcomes and long-term investment signals to industry, in particular where the common procurement covers activities that would be eligible for funding from the Union budget, e.g. research and development, testing and certification, initial production or in-service support activities;

Removed(c) the contribution of the action to the ramp-up of necessary manufacturing capacities in Ukraine;

Removed(d) the complexity for Ukraine to progress with the accession process, including structural reforms and measures to promote convergence with Union rules, standards, policies and practices;

Removed(e) the degree of complexity for Ukraine to adapt its defence procurement processes and the environment of the Ukrainian defence industry, including to meet NATO and other relevant standards;

Removed(f) the efforts and risks associated with Russia´s war of aggression against Ukraine, taking into account the need to rebuild and modernise infrastructure damaged by that war in a resilient way and the need to avoid, prevent or reduce and, if possible, offset such damages.

Removed3. Only actions referred to in Article 12 shall be funded by way of grants taking the form of financing not linked to costs, pursuant to Article 183(3) of the Financial Regulation, and the support from the Ukraine Support Instrument shall not exceed 25 % of the estimated value of the common procurement contract.

Removed-1. European Defence Projects of Common Interest shall consist of collaborative industrial projects aimed at reinforcing the competitiveness of the EDTIB throughout the Union while contributing to the development of Member States’ military capabilities and systems of common interest and/or use, including those securing access to all operational domains.

Removed1. The Council, acting upon proposal of the Commission shall adopt implementing acts identifying an European Defence Project of Common Interest by qualified majority.

Removed2. The Commission shall adopt delegated acts in accordance with Article 56a concerning work programmes with regard to setting out the funding of actions related to European Defence Projects of Common Interest via delegated acts.2a. Ukraine shall be allowed to participate in the European Defence Projects of Common Interest.

Removed3. European Defence Projects of Common Interest shall meet the following general criteria:

Removed(-a) the project contributes to the defence capabilities critical for the security and defence interests of the Union and therefore is in the European public interest;

Removed(a) the project aims at developing capabilities, including those securing access to strategic domains and contested spaces, strategic enablers, and, as appropriate, systems acting as European defence infrastructure of common interest and use;

Removed(aa) the project improves the interoperability and interchangeability of defence products, facilitates the implementation of military standards, and significantly contributes to market integration and consolidation by reducing the variability of defence products across the Union addressing similar operational needs;

Removed(ab) the benefits of the project extend to a wider part of the Union and ensures a broad geographical participation;

Removed(ac) the projects shall be particularly significant in size or scope and aim at mitigating a considerable level of technological or financial risk;

Removed(b) the potential overall benefits of the project outweigh its costs, including in the longer term.