Article 3 — Budget

1. The financial envelopes for the implementation of the Programme for the period from 30 December 2025 to 31 December 2027 shall be composed of: (a) EUR 1200000000 in current prices; and (b) additional contributions in accordance with Article 5. 2. The financial envelopes for the implementation of the Ukraine Support Instrument for the period from 30 December 2025 to 31 December 2027 shall be composed of: (a) EUR 300000000 in current prices; and (b) additional contributions in accordance with Article 23, to the extent earmarked. 3. Union funding under this Regulation shall only cover the costs necessary for pursuing the objectives of the Programme and the Ukraine Support Instrument. Therefore, Union funding under the Programme and the Ukraine Support Instrument shall not cover the costs of the purchase and the maintenance of defence products for military or defence purposes, including in the context of establishing, managing and maintaining defence industrial readiness pools as referred to in Article 38 (defence industrial readiness pools). Union funding under this Regulation may cover costs incurred in the context of the purchase or maintenance of such products where those costs are necessary for strengthening the competitiveness of the EDTIB or for the recovery, reconstruction and modernisation of the Ukrainian DTIB, in particular non-recurrent costs. 4. At least 15 % of the financial envelope referred to in paragraph 1, point (a), of this Article shall be allocated to actions referred to in Article 11, and at least 30 % of that financial envelope shall be allocated to actions referred to in Article 12. Up to 25 % of that financial envelope may be allocated to actions referred to in Article 35. 5. In order to respond to unforeseen situations or to new developments and needs, the Commission may transfer the amounts referred to in paragraphs 1 and 2 of this Article between the Programme and the Ukraine Support Instrument in accordance with the Financial Regulation. 6. Up to 3,5 % of the amount referred to in paragraphs 1 and 2 of this Article may be used for technical and administrative assistance for the implementation of the Programme and the Ukraine Support Instrument, such as preparatory, monitoring, control, audit and evaluation activities, including price investigations and corporate information technology systems and platforms, and all other technical and administrative assistance or staff-related expenses incurred by the Commission for the management of the Programme and the Ukraine Support Instrument. 7. Budgetary commitments for activities extending over more than one financial year may be broken down over several years into annual instalments. 8. If necessary to enable the management of actions not completed by 31 December 2027, appropriations may be entered in the Union budget until 2033 to cover the expenses necessary to fulfil the objectives set out in Article 4 for the Programme or, where relevant, Article 22 for the Ukraine Support Instrument, to enable the management of actions not completed by the end of the Programme or the Ukraine Support Instrument, and to cover the expenses related to critical operational activities and services.