Ukraine strengthens its defense industry with nearly 600 million euros investment from Denmark.

Ukraine's defense sector is set to receive a significant boost with a nearly EUR 600 million investment, announced today by Ukrainian Defense Minister Rustem Umerov, Minister for Strategic Industries Herman Smetanin, and Danish Defense Minister Troels Lund Poulsen. The signing of a Memorandum of Understanding between Ukraine's Ministry of Defense, the Ministry for Strategic Industries, and Denmark's Ministry of Defense outlines a strategy to inject around EUR 600 million into Ukraine's defense industry. Of this amount, EUR 175 million will come from Denmark, while EUR 400 million will be sourced from profits generated by frozen Russian assets.

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Denmark has already played an active role in military support to Ukraine, including the recent financing of 18 Bohdana self-propelled artillery systems, which were manufactured in Ukraine and delivered to the Ukrainian army (Picture source: Ukrainian MoD)

According to Minister Umerov, this financial support will have a direct impact on the development of combat drones, missiles, and anti-tank systems, accelerating the deployment of these crucial weapons on the battlefield. The aid is designed to strengthen the Ukrainian Armed Forces' defense capabilities at a time when international support is essential in countering Russia's invasion.

Denmark has already played an active role in military support to Ukraine, including the recent financing of 18 Bohdana self-propelled artillery systems, which were manufactured in Ukraine and delivered to the Ukrainian army. This project illustrates Denmark's commitment to strengthening Ukraine's defense production capacities. Beyond the military dimension, this investment also helps sustain Ukraine's economy during the war, as highlighted by Minister Smetanin, who expressed gratitude towards the Danish government and people, recognizing the agreement as crucial for Ukraine's defense efforts.

In addition to military aid, this collaboration demonstrates a mutual desire to strengthen ties between the two nations in defense production. Ukraine is open to new cooperation formats with other European countries, as emphasized by Minister Umerov, who underscored the importance of a strong defense industry to ensure battlefield success and restore the country's territorial integrity.

Danish Defense Minister Troels Lund Poulsen welcomed the agreement, stating that it reflects Denmark’s firm commitment to supporting Ukraine in its fight for sovereignty. He also stressed that Denmark aims to ensure that the DKK 4.2 billion (approximately EUR 600 million) provided by the EU and Denmark is optimally used to enhance Ukraine’s defense capabilities.

In addition to the financial support, Denmark will play a key role in the direct procurement of weapons and defense equipment produced by Ukrainian manufacturers. This will boost Ukraine’s production capacity and enhance its ability to meet the ongoing needs of its armed forces. This long-term support is intended to promote Ukraine’s self-sufficiency in weapons production, a fundamental aspect of the country's defense strategy.

This cooperation is part of broader efforts to support Ukraine. Earlier this year, Denmark financed the procurement of Bohdana artillery systems, a pilot project that laid the foundation for broader defense acquisition cooperation between the two nations. Poulsen’s visit to Kyiv comes ahead of the Defense Industries Forum, scheduled for October 1-5, where a significant delegation of Danish defense industry representatives will be present to further deepen industrial and defense relations between Denmark and Ukraine.

The agreement marks a new phase in Denmark’s overall effort to support Ukraine’s defense, as both nations seek to enhance their security cooperation. With both sides exploring concrete procurement projects, this partnership, supported by substantial financial resources and political will, is expected to play a key role in helping Ukraine maintain its defense capabilities in the face of current challenges.

Denmark has provided multifaceted, long-term support to Ukraine since the Russian invasion, contributing nearly EUR 6.7 billion in military aid and approximately EUR 667 million in civilian assistance. This support, provided bilaterally and in collaboration with international partners, includes investments in humanitarian aid, reconstruction, stabilization efforts, and support for the private sector. In particular, Denmark’s military assistance features significant funding through its National Ukraine Fund, which has allocated DKK 60.4 billion (around EUR 8.1 billion) to support Ukraine between 2023 and 2028. The majority of these funds will be available from 2023 to 2025, bolstering Ukraine's defense capacity while helping Denmark meet its commitment to spend 2% of its GDP on defense, as required by NATO.