Launched in April 2024, the ZBROYARI: Manufacturing Freedom global fundraising campaign has gathered a total of USD 931 million by the end of the year. Also known as the "Danish model," the initiative became a precedent in the history of arms agreements. Multiple nations donated money directly to hand-picked companies in Ukraine to help them scale up production and ensure Ukrainian Defense Forces are properly supplied.
A summary of this year's progress was given in an article by Ekonomichna Pravda financial news website. The journalists note that each country-contributor chooses where its funds will go by selecting among Ukrainian military projects and specific manufacturers. For example, Denmark handed its funds to the factory producing 2S22 Bohdana self-propelled artillery systems, Lithuania paid for the production of Palianytsia deep strike drones, and the Netherlands funded naval and FPV drones.
Read more: Ukrainians Say Their 2S22 Bohdana is More Accurate Than PzH-2000 With Rocket-Assisted Firing Range of 60 km
The contracts are concluded through the Ukrainian Ministry of Defense or directly with the manufacturing enterprises. Important factors are the company's reputation and reliability, as well as how much in demand its products are.
The "Danish model" was named after its first donor and, incidentally, the top donor at that. Denmark committed 351.4 million in total, divided among several bilateral agreements. Next up, the United Kingdom provided $67 million, Norway added $45 million, and the European Union collectively sent $436 million of windfall profits from frozen russian assets.
At the same time, the reporters criticize the Ukrainian government for the lack of long-term procurement deals. Agreements spanning two to three years would help avoid situations where a manufacturer has nothing to do until a new contract is signed: the current legislation only allows the state executives to issue short-term orders because of budget planning issues.
With longer contracts, arms makers would also rest assured that they will still be needed next year and thus incentivized to invest in scaling up production or exploring new technologies.
Read more: After Successful Purchase of the Bohdana Self-Propelled Howitzers, Denmark Order More Weapons from Ukrainian Enterprises
