1. Defence and security tech have become increasingly relevant for investors. What’s driving this surge in interest and how sustainable is the current momentum?

The surge in interest is primarily driven by heightened geopolitical instability, notably the war in Ukraine, and the recognition that resilience is now a strategic priority for governments and businesses alike. Increased defense budgets across Europe, combined with rapid technological advancements in areas such as AI, cyber, and space, have created a dynamic investment landscape. This momentum is likely to remain strong in the medium term because these changes are structural rather than cyclical. Long-term sustainability will depend on continued innovation and the ability to integrate defense technologies into broader security and resilience frameworks as well as procurement cycles.

2. In your role at EY, you work closely on Ukraine’s reconstruction and EU integration. How do you see this process shaping new investment opportunities in Europe’s defence and resilience sectors?

Ukraine’s reconstruction is not simply about rebuilding—it is about modernization and alignment with EU standards. This process creates significant opportunities for interoperable defense systems, cybersecurity solutions, and resilient infrastructure. Investors will find attractive prospects in dual-use technologies, localized supply chains, energy security, and advanced manufacturing. Moreover, EU funding mechanisms and public-private partnerships linked to resilience and defense modernization will play a critical role in enabling these investments. Recently Ukraine Facility Framework has been extended to finance dual-use projects. Also Ukrainian companies are gradually getting access to European defence financing programs, among them EDF and EDIP, and actively pursuing collaboration with European sector players. I hope we’ll see real projects examples very soon.

3. Investing in defence tech often comes with regulatory and ethical complexity. What do investors need to understand to navigate this market responsibly?

Investors must navigate a landscape shaped by stringent export controls, EU defense directives, and sanctions compliance. Ethical considerations are equally important, particularly around ESG principles, transparency, and ensuring responsible end-use of technologies. To operate responsibly, investors should implement robust due diligence frameworks, engage with compliance experts, and align their strategies with international norms. This approach mitigates reputational and legal risks while supporting sustainable growth in the sector.

4. How can public-private partnerships and cross-border collaboration between EU countries, and Ukraine, accelerate innovation in this space?

Defence innovations require constant investments into R&D. Public-private partnerships are essential for unlocking funding and de-risking research and development. EU initiatives such as the European Defence Fund and EDIP foster collaboration and innovation. Ukraine brings combat-proven technologies and an agile innovation ecosystem, while the EU offers scale and regulatory stability. Joint ventures and co-development programs can significantly shorten innovation cycles and strengthen interoperability across the region.

5. Looking ahead, what role can private capital play in ensuring that Europe remains both technologically and geopolitically resilient once the immediate demand for defence innovation subsides?

Private capital will be critical in bridging gaps in public funding and sustaining innovation ecosystems beyond the current surge in demand. It can help scale dual-use technologies for civilian applications and support long-term investments in cybersecurity, space, AI, and critical infrastructure. By focusing on resilience as an economic driver, private investors can position Europe as a global leader in secure and sustainable technologies, ensuring that geopolitical and technological strength endures well into the future.