Denmark to allot DKK 6.7 billion to support Ukraine and develop the Ukrainian defence industry

On 3 April, representatives of the Ministry of Economy of Ukraine chaired by the First Deputy Prime Minister of Ukraine and Minister of Economy of Ukraine Yuliia Svyrydenko met with the Minister of Finance of Denmark, Nicolai Wammen. The meeting participants focused on military assistance, attracting investment and private capital to Ukraine, and further prospects for economic cooperation.

The Danish Minister of Finance announced the allocation of the 25th military aid package to Ukraine in the amount of DKK 6.7 billion (about USD 1 billion). The package includes air defence systems, artillery, and funding for the Ukrainian Air Force. The assistance will be provided over the period 2025-2027.

During the meeting, the parties paid special attention to the ‘Danish model’ of assistance, which involves direct investment in the Ukrainian defence industry. As part of the new package, Denmark will allocate DKK 2 billion over 2025-2027 to support arms production in Ukraine.

"The Danish model is an extremely effective mechanism that has become an example for other allied countries of Ukraine. Instead of buying weapons abroad, Denmark invests directly in Ukrainian production. This ensures both faster supplies for our armed forces and the development of the Ukrainian economy," said Yuliia Svyrydenko, First Deputy Prime Minister of Ukraine and Minister of Economy of Ukraine.

Last year, Denmark already transferred DKK 4.4 billion under this model, which significantly supported the Ukrainian defence industry. This model also encourages other countries to invest directly in production in Ukraine.

During the meeting, the parties also discussed the expansion of economic cooperation. The Danish Minister noted that about 100 of the largest Danish companies were already investing in Ukraine, including Carlsberg and the logistics company DSV, which had even increased their presence in Ukraine in the wake of other foreign companies leaving the market.

The Ukrainian side has introduced mechanisms to attract investment during the war, including through intergovernmental agreements. Currently, the Ukrainian Government is actively working to improve the investment climate, in particular by introducing war risk insurance mechanisms. Representatives of the Ministry of Economy stressed the importance of attracting private investment funds to support Ukrainian business.

The parties also discussed a new Danish initiative, the IFU 2.0 model, which will allow the Danish investment fund IFU to provide guarantees for Danish investors wishing to invest in Ukraine. This initiative will apply not only to the defence industry but also to other sectors of the Ukrainian economy.

The two sides agreed to organise a special business mission of Danish companies to Ukraine to establish direct contacts between businesses of both countries.