Heidi Crebo-Rediker
Dual-Use Investment Rule Change Can Unlock New Funds
As Russia’s invasion of Ukraine continues into its third year, the fast-evolving landscape of modern warfare presents the European Union with a unique strategic opportunity to harness the capabilities and financial resources of the European Investment Bank (EIB) to bolster not only Ukraine’s military capabilities but also enhance Europe’s defense industrial complex. By investing in innovative Ukrainian drone manufacturers today, the European Union can leverage global financial markets through the EIB to facilitate significant advancements in defense technologies that serve both Ukraine’s immediate and Europe’s long-term security interests.
As the financing institution of the European Union and the world’s largest multilateral lender and borrower in international capital markets, the EIB is well positioned to support loans to and investments in dual-use companies (those that produce products for civilian and military use). The recent approval of the EIB’s new Security and Defense Action Plan now permits the bank to lend to dual-use companies primarily for military purpose and extends this financing policy to small- and medium-size enterprises (SMEs) and innovative startups in security and defense, specifically referencing drones as a sector for potential investment. The EIB is now a powerful financing arrow in the quiver that Russia cannot match.
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