Recital (8)

As innovation activities in critical defence technologies may significantly affect the security and defence interests of the Union and its Member States, it is necessary to establish specific eligibility rules which ensure consistency with other Union instruments in the defence industry sector and which take into account Russia’s war of aggression against Ukraine. Such specific eligibility rules should limit participation to legal entities established in the Union, in Ukraine, or in a member of the European Free Trade Association (EFTA) which is a member of the European Economic Area (EEA member) and which is associated to Horizon Europe. Those rules should exclude the participation of legal entities that are directly or indirectly controlled by a third country other than Ukraine or an EEA member associated to Horizon Europe, or by legal entities of such a third country. However, a legal entity established in the Union or in an EEA member associated to Horizon Europe and which is controlled by a third country other than Ukraine or an EEA member associated to Horizon Europe, or by a legal entity of a third-country other than Ukraine or an EEA member associated to Horizon Europe should be eligible to be a beneficiary, provided that guarantees approved in accordance with the national procedures of the Member State or the EEA member in which the legal entity is established are made available to the Commission.