Recital (27)

In order to increase the competitiveness of the EDTIB, foster the recovery, reconstruction and modernisation of the Ukrainian DTIB and ensure the timely availability and supply of defence products from those defence technological and industrial bases, it is important to establish minimum requirements concerning the value generated within the Union and associated countries or, where relevant, Ukraine. This will enhance the efficiency of the Union support under the Programme and the Ukraine Support Instrument. Therefore, for actions supported by Union funding under the Programme or the Ukraine Support Instrument, the cost of the components originating outside the Union and associated countries or, where relevant, Ukraine should not be higher than 35 % of the estimated cost of the components of the end-product or of the product the increase in production capacity of which is supported by Union funding. The objectives pursued under this Regulation will be achieved all the more effectively if the cost of those components is lower than that 35 % threshold. Recipients of Union funding are invited to aim to gradually lower that percentage in new products. Raw materials are not considered components.