Denmark to Contribute $575M to Support Ukrainian Defense Industry

Denmark confirmed financial contributions totaling approximately DKK 4 billion ($575 million) to support Ukraine's defense industry, funded by the Ukraine Fund, interest income from frozen Russian assets on behalf of the EU, and a contribution from Sweden.

The decision follows the signing of a letter of intent at the end of September between Denmark's Defense Minister Troels Lund Poulsen, Ukrainian Defense Minister Rustem Umerov, and Minister of Strategic Industries Herman Smetanin in Kyiv.

The cooperation focuses on acquiring artillery, attack drones, anti-tank weapons, missiles, and naval missile systems produced in Ukraine. Deliveries are expected to be completed by the end of the year, although specific details regarding quantities, prices, and manufacturers remain undisclosed for security reasons.

Troels Lund Poulsen emphasized Denmark’s commitment to supporting Ukraine, stating that direct support to the Ukrainian defense industry is vital for long-term assistance. The new initiative builds on a previous pilot project earlier this year, which saw the delivery of 18 Ukrainian-made artillery pieces to the Ukrainian Armed Forces in September.

The Ukraine Fund has allocated DKK 1.3 billion for these donations, while Denmark will also distribute approximately DKK 2.9 billion from frozen Russian assets on behalf of the EU. Additionally, Denmark is contributing DKK 20 million in coordination with Sweden to further bolster Ukraine's defense.

The donation package will also include air defense capabilities, with consultations taking place with the Foreign Policy Council about collaboration with international partners. However, the portion funded by the Ukraine Fund will require final approval from Denmark's Finance Committee.