This announcement was published on the official website of the Danish Ministry of Defence.
Under an agreement signed between Denmark and the European Union, Denmark will take the lead in distributing proceeds from frozen russian assets in 2025.
Read more: Denmark’s Hidden Aid: How 2S1 Gvozdika Howitzers Joined Ukraine’s Arsenal
As part of this initiative, Denmark will allocate €830 million on behalf of the EU next year to support Ukraine’s military needs - primarily by purchasing weapons produced by the Ukrainian defense industry.
"In light of the geopolitical situation, it is important to show that we stand with Ukraine. With the ‘Danish Model,’ Denmark has taken the lead in international efforts to strengthen Ukraine’s defense production. It is truly exceptional that we now have the opportunity to scale up this effort with additional funding from the EU. The fact that the EU has chosen Denmark as the channel for more funds this year is a recognition of our leadership," said Minister of Defence Troels Lund Poulsen.
According to the minister, procuring weapons directly from Ukrainian manufacturers not only supports the country’s economy but also helps develop its defense sector and ensures better alignment with battlefield needs.
Another important factor is cost-effectiveness. Weapons produced in Ukraine are significantly cheaper than those from European or American defense contractors - allowing for larger volumes to be purchased for the same amount of funding.
“Ukraine’s own production facilities offer competitive pricing and allow us to respond more quickly to Ukraine’s operational requirements. Additionally, the Armed Forces of Ukraine receive equipment they already know how to operate and maintain,” Poulsen added.
Denmark was the first country to fund weapons procurement for the Ukrainian Armed Forces through domestic Ukrainian defense firms. In 2024, Denmark allocated €400 million for this purpose. That funding enabled the acquisition of additional drones, artillery systems, and ammunition.
“In this way, we ensure that Ukraine’s urgent military needs can be met through local production. This approach provides obvious logistical advantages and also contributes to strengthening Ukraine’s defense industrial base for the future. Now, we are ready to expand this effort on a much larger scale,” the minister noted.
In 2025, Denmark plans to more than double its contribution through this model.
A total of 3 billion Danish kroner has been allocated from the Danish Ukraine Fund to finance procurements from Ukraine’s defense industry between 2025 and 2027. Denmark will also act as the implementing partner for several other countries, including Norway, Sweden, Iceland, and Canada.
Read more: How Nearly $1 Billion From Denmark’s New Aid Package for Ukraine Will Be Spent
