The regulation adopted by the Council of the European Union, which will enter into force on May 29, 2025, provides for this. It sets out strict conditions for companies to participate in projects financed by SAFE, a European fund established to support urgent public investment in the defense industry and military infrastructure.
“Contractors and subcontractors participating in joint public procurement must be established and have their executive management structures in the Union, in an EEA EFTA state or in Ukraine. They must not be under the control of a third country that is not an EEA EFTA state or Ukraine, as well as under the control of an entity from another third country that is not established in the Union, in an EEA EFTA state or in Ukraine,” the regulation reads.
The document also states that member companies cannot be controlled by entities from third countries. Exceptions are possible only “in special circumstances” and in the presence of guarantees approved at the European level, but they are strictly aimed at ensuring the security and defense of the Union.
Thus, companies from Moldova, Turkey or other third countries cannot participate in tenders for strategic works financed under SAFE, including military mobility projects, which include the construction and modernization of roads, railways, ports and logistics infrastructure that can also be used for military purposes.
EU Regulation 1106/2025 established the European Security Action Instrument (SAFE), a temporary mechanism through which the EU provides financial support to Member States to accelerate public investment in defense, industrial production and strategic infrastructure.
The SAFE fund was created in response to the deteriorating security situation caused by the war in Ukraine and aims to strengthen the European Defense Technology and Industrial Base (EDTIB).
Member states can access European loans for projects targeting priority areas identified at European Council level: military mobility, critical infrastructure, cyber defense, unmanned aerial vehicles, air defense, logistics and strategic support.
