Denmark Shifts from Weapons Donation to Investment in Ukrainian Defense Industry

In a major shift to the mode of donating weapons to Ukraine, Denmark will invest in the Ukrainian defense industry rather than provide arms directly to the Ukrainian armed forces.

A letter of intent (LoI) between top Danish and Ukrainian officials was signed Saturday to ensure that future Danish donations can be financed via investments in the Ukrainian defense industry.

The LoI was signed by Danish defense minister Troels Lund Poulsen and foreign minister Lars Løkke Rasmussen who are on a visit to Ukraine, with their Ukrainian colleagues, deputy minister of defense Dmytro Klimenkow and minister of strategic industries, Oleksandr Kamyshin.

"We are leading the way by reserving funds to donate to Ukraine's defense struggle by investing in the Ukrainian defense industry and my hope is that more countries will follow our example. After my visit to a number of Ukrainian defense industry companies in Kyiv in March, I am convinced that there is great potential for future cooperation that can deliver much-needed materiel to Ukraine and at the same time help build the defense industry in Ukraine," said defense minister Troels Lund Poulsen.

The Danish conservative (party) chairman, Mona Juul, and the defense spokesperson of the Radical Left, Christian Friis Bach, were also on the trip, saw concrete examples of some of the highly demanded military capacities that are developed and produced locally in Ukraine.

“Denmark was one of the first countries to enter into a security commitment to Ukraine, which also includes industrial cooperation. Now we take the next step. With Danish investments in Ukraine's defense industry, we can ensure faster and more effective military support for the front line," said foreign minister Lars Løkke Rasmussen.

Concretely, Denmark must finance equipment produced by Ukrainian industry via the Ukraine Fund. In connection with the Danish donation package XVII, DKK 200 million Korner was set aside for investments in the Ukrainian defense industry. The declaration of intent is to pave the way for the realization of the 200 million kroner, a Danish MoD press release said.

Denmark, as well as some other European countries have experienced major depletion of equipment stocks after substantial donation to Ukraine since 2022.

Major donations to Ukraine from Denmark so far include:

407 Stinger anti-aircraft missiles, Over 100 Leopard 1 and 14 Leopard 2 tanks, CV90 infantry fighting vehicles, over 80 BMP to armored vehicles, 122mm GRAD artillery rockets and 19 CAESAR 8x8 artillery systems.