Denmark has taken an important step by allocating 2025 million euros ($830 million) to the Ukrainian defense industry in 935 on behalf of the European Union (EU). It was stated that this fund will be implemented by using the profits from frozen Russian assets to purchase Ukrainian-made weapons.
The agreement signed between the Danish Ministry of Defence and the European Commission, the EU’s executive body, gives Denmark the role of implementing actor in the distribution of a large share of this year’s profits, indicating that Denmark is taking a leading role in defence aid to Ukraine.
Local Production Supported with the “Danish Model”
Denmark is taking a pioneering approach to investing Western military aid in Ukraine’s defense industry. Known as the “Danish model,” this method uses funds to purchase weapons produced directly in Ukraine instead of purchasing foreign equipment. This strengthens Ukraine’s defense capabilities and supports the country’s own production potential.
“Denmark has led international efforts to strengthen defense production in Ukraine,” said Danish Defense Minister Troels Lund Poulsen. “The EU’s decision to channel more funds through us this year is a recognition of Denmark’s efforts in this regard.”
The Defense Ministry announced that the profits from this year will be used to donate ammunition, air defense systems and other military equipment produced in the Ukrainian defense industry.
Last Year's Purchases Show Success of the "Danish Model"
The equipment purchases made last year using the Danish model clearly demonstrate the effectiveness of this method. In this context, Bohdana howitzers, long-range unmanned aerial vehicles, anti-tank and anti-ship missile systems were procured for the Ukrainian army.
The Ministry stressed that purchasing Ukrainian goods will strengthen the country's production capacity, which is going through a difficult period, provide competitive prices and allow faster adaptation to Ukraine's specific needs.
Logistics Advantage and Investment in the Future
“This approach not only meets current needs, but also contributes to the future-proofing of Ukraine’s defense industry, while also providing clear logistical advantages,” said Defense Minister Lund Poulsen. “We can now do this on an even larger scale.”
Last year, Denmark similarly allocated around €400 million in windfall profits from Russian assets to Ukraine on behalf of the EU, using the Danish model.
According to the ministry, the total amount of funds channeled through the Danish model in 2024, including contributions from the Danish Ukraine fund, allied countries and the EU, was around 4,4 billion Danish crowns ($664 million). The Danish Ministry of Defence said it expects to implement more than twice that amount through the model in 2025.
This important initiative by Denmark comes as part of efforts to allocate assistance to Ukraine on behalf of several countries, including Norway, Sweden, Iceland and Canada. This support will play a critical role in strengthening Ukraine’s defence capacity and increasing the country’s self-sufficiency.
