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How Nearly $1 Billion From Denmark’s New Aid Package for Ukraine Will Be Spent

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Denmark will strengthen Ukrainian artillery / Photo credit: Forsvaret
Denmark will strengthen Ukrainian artillery / Photo credit: Forsvaret

Denmark is actively investing in Ukraine’s defense industry and calling on others to follow what has already been termed the "Danish model"

The Danish government has announced its 25th aid package for Ukraine, totaling 6.7 billion Danish kroner (approximately $970 million).

These funds will be used to procure new weapons, including through the so-called "Danish model," where weapons for Ukraine are purchased from Ukrainian manufacturers. This involves long-term contracts, as the implementation period, according to the official statement, spans from 2025 to 2027.

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The allocation of the funds has also been detailed. Specifically, $203 million will be used to expand Ukraine’s artillery capabilities and supply ammunition. Another $290 million will be allocated for orders placed with Ukraine’s defense industry. These will include multi-year funding programs aimed at developing Ukraine’s defense sector.

"It is extremely important that we help Ukrainians build their defense industry. The Danish model has demonstrated that Ukraine has the capability to produce and supply weapons for its fight for freedom. Denmark must continue investing in this, and I hope that other countries will follow our example and scale it up," said Denmark's Defense Minister Troels Lund Poulsen.

The allocation of another $477 million has not been detailed. However, it has been stated that the funds will be directed toward air defense, contributions to the Drone Coalition, and the IT Coalition.

Danish-supplied CAESAR self-propelled artillery system in service with the Ukrainian Armed Forces / Defense Express / How Nearly $1 Billion From Denmark’s New Aid Package for Ukraine Will Be Spent
Danish-supplied CAESAR self-propelled artillery system in service with the Ukrainian Armed Forces / Illustrative photo credit: Ukrainian Air Assault Forces Command

The Drone Coalition was established in early 2024 to centralize the supply of UAVs, both through direct deliveries of drones and funding for their procurement.

The IT Coalition is a similar initiative focused on software, communications, and cybersecurity.

Regarding air defense systems, Denmark is not a manufacturer and has no stockpiles for direct transfer. Therefore, it is likely that these funds will be invested in joint procurement of new systems from other nations.

Same with artillery, it is difficult to predict which systems may be involved. Most likely, Denmark will join collective purchases to increase the overall volume of orders.

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