Special Grant Program for the Development of AI Technologies in Ukraine

The U.S. Department of Defense is supporting a new grant program through the Ukrainian Defense Innovation Fund to accelerate the development and combat testing of advanced defense technologies. Ukrainian companies and individual entrepreneurs can receive up to 8,000,000 UAH to create, refine, and test defense products intended for deployment by Ukraine’s security and defense forces. The program supports a wide range of development and operational expenses but excludes the purchase of weapons (except prototypes) and activities already funded by other programs.

Overview

The U.S. Department of Defense (DoD), in partnership with the Ukrainian Defense Innovation Fund, has launched a grant initiative to support the development and testing of advanced defense products. The program provides Ukrainian innovators with significant financial resources to transform defense concepts into fully tested, deployable solutions.

Program Objective

The grant aims to:

• Accelerate R&D and fabrication of advanced defense technologies

• Support real-world testing of prototypes under combat or near-combat conditions

• Enable rapid transfer of finished products to Ukraine’s defense and security units

• Strengthen Ukraine’s domestic defense innovation ecosystem

Grant Amount

• Maximum grant per project: 8,000,000 UAH
  This sum enables companies to move from concept to operational testing with strong financial backing.

Who Is Eligible?

Eligible Applicants

• Ukrainian companies

• Individual entrepreneurs registered according to Ukrainian legal procedures

Not Eligible

• State enterprises

• Municipal enterprises

• Public organizations

• Charitable organizations

This ensures the program focuses on private-sector innovation with direct production and testing capacity.

Eligible Expenses

Funding may be used for costs directly linked to product development and operational testing, including:

• Business trips

• Marketing activities

• Rental of land, vehicles, buildings, or other premises

• Purchase of vehicles, furniture, mobile phones, and household appliances

• Purchase of fuel and lubricants

• Repair of premises

• Defense product development and testing activities

These categories support holistic development—from engineering to field testing.

Ineligible Expenses

The grant cannot be used for:

• Purchase of weapons (except prototype models for testing)

• Any costs previously funded by other programs
  This ensures transparency and avoids double funding.

Project Expectations

Funded projects must:

• Result in a completed, functional defense product

• Undergo testing in combat or operational conditions

• Be ready for deployment to designated units of Ukraine’s security and defense forces

The program is focused on delivering real, immediate value to national defense operations.

Why It Matters

This initiative strengthens Ukraine’s ability to:

• Innovate rapidly under wartime conditions

• Develop scalable, homegrown defense technologies

• Equip frontline units with effective solutions derived from local expertise

• Support private-sector R&D that directly reinforces national security

The program also deepens U.S.–Ukraine defense cooperation through targeted innovation funding.

How to Apply

1. Confirm your company or entrepreneur registration status in Ukraine.

2. Prepare a project concept describing the defense product, development timeline, and intended combat testing.

3. Detail expected outcomes and how the solution will support defense and security forces.

4. Prepare a budget within the 8,000,000 UAH limit, ensuring all expenses meet eligibility rules.

5. Submit the application through the Ukrainian Defense Innovation Fund’s designated portal or submission system.

6. Await evaluation based on technical feasibility, defense relevance, and testing readiness.

Common Mistakes to Avoid

• Proposing weapon purchases instead of prototypes

• Submitting expenses covered by other funding programs

• Applying as a non-eligible institution (NGO, charity, state enterprise)

• Providing insufficient detail on combat testing requirements

• Misaligning the project with defense operational needs

FAQ

1. What is the maximum funding amount?
Up to 8,000,000 UAH per project.

2. Who can apply?
Ukrainian private companies and registered individual entrepreneurs.

3. Are NGOs or state enterprises eligible?
No, they are excluded from this program.

4. Can the grant be used to buy weapons?
Only for weapon prototypes or models required for development and testing.

5. What expenses are allowed?
Rental, vehicles, appliances, business trips, marketing, fuel, repairs, and other development-related costs.

6. Must products be tested in combat conditions?
Yes, testing under combat or operational conditions is a core requirement.

7. What happens after testing?
Finished products are transferred to designated Ukrainian defense and security units.

Conclusion

This DoD-supported grant program offers Ukrainian innovators a rare opportunity to develop, test, and deploy advanced defense technologies with substantial financial backing. By focusing on real-world impact and combat-ready solutions, the initiative strengthens Ukraine’s defense capabilities while empowering the local innovation ecosystem to deliver technologies that meet urgent national needs.