The Danish ministry of Defense announced on Friday, May 9, that it had been chosen by the European Union as the implementing partner for the allocation of funds derived from the interest accrued by frozen Russian assets to support Ukraine’s domestic defense industry. The fund is likely to be worth around €830 million ($925 million) and will be disbursed using the “Danish model.”
Wanting to support Kyiv in its fight against Russia’s invasion but lacking its own major defense industry, Copenhagen was the first Western supporter to target its military aid on enabling Ukraine to produce weapons locally rather than relying on foreign equipment. It reasoned that domestic production would be cheaper, make maintenance more straightforward and get weapons to the battlefield faster – and so it proved.
In 2024, Denmark, along with Sweden and Iceland, plus interest on frozen Russian assets, provided around €538 million ($600 million) in finance for Ukrainian arms manufacturers. The Danish model allowed the purchase of Bohdana 155mm howitzers, long-range drones, anti-tank and anti-ship missiles, among a number of other systems.
During Friday’s announcement, the Danish Minister of Defense Troels Lund Poulsen said: “… [using] the ‘Danish Model’, Denmark has taken the lead in international efforts to strengthen defense production in Ukraine. It is truly exceptional that we now have the opportunity to enhance this effort even further with additional funding from the EU.”
“It is a recognition of Denmark’s efforts on this matter that the EU has decided to channel even more funds through us this year,” he added.
During January meetings with the NATO Secretary General Mark Rutte and German Defense Minister Boris Pistorius, President Volodymyr Zelensky paid tribute to Denmark’s efforts and placed “great hopes” that efforts to build on the Danish model would raise at least $1 billion through the initiative in 2025.
Encouraging more allies to join was high on the agenda of the Ukraine Defense Contact Group (UDCG) in the Ramstein format on Jan. 9.
Denmark said it had allocated a total of DKK 3 billion ($450 million) to the “Danish Ukraine Fund” from 2025 to 2027, during which time it will also act on behalf of several other countries, including Norway, Sweden, Iceland, and Canada.