Denmark to Finance Equipment Produced in Ukraine as Donation to Kyiv

Future donations of military aid to Ukraine by Denmark will be in the form of financing of equipment produced by the Ukrainian industry.

An agreement giving effect to this major policy shift was signed on Thursday in Brussels between Danish Defense Minister Troels Lund Poulsen and his Ukrainian colleagues, Defense Minister Rustem Umerov and Deputy Minister of the Ministry of Strategic Industries, Sergiy Boyev.

Under this new arrangement, Denmark will no longer provide drones, armored vehicles, and tanks from its own stock. Instead, it will finance the production of these items on Ukrainian soil. This development follows a declaration of intent made during Minister Poulsen's visit to Ukraine in April, and marks a major step forward in the countries' defense cooperation.

"Denmark has promised to support Ukraine's defense struggle for the next 10 years. This requires, among other things, that we produce more weapons and more ammunition. That is why we as a country are now taking the lead and following up on a direct request from Ukraine to invest in the Ukrainian defense industry," said Defense Minister Troels Lund Poulsen. "With Danish-Ukrainian defense industry cooperation, we ensure faster and more effective military support right at the front line, where it matters."

The agreement introduces a novel model where Denmark finances contracts between Ukraine and Ukrainian companies for the acquisition of military equipment. This model is the first of its kind and represents a strategic move to enhance Ukraine's defense capabilities while boosting its local defense industry.

Denmark has earmarked a total of DKK 1.2 billion ($172 million) through donation packages XVII and XVIII for this project, with the first donations expected to commence during the summer.

"I hope that more countries will follow the Danish model," Poulsen added. "The Ukrainians' capacity to produce equipment is greater than the funding they currently have for it. Therefore, there is great potential for similar agreements to supply requested equipment to Ukraine and at the same time help build the defense industry in Ukraine."