Denmark to allocate more than 800 million EUR to Ukraine on behalf of the EU in 2025

In 2025, Denmark will be responsible for disbursing approximately 830 million euros for donations procured in the Ukrainian defence industry on behalf of the EU through the European Peace Facility. 

"In light of the geopolitical situation, it is important to show that we stand with Ukraine. With the ‘Danish Model’ Denmark has taken the lead in the international efforts to strengthen defence 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," says Minister of Defence Troels Lund Poulsen.

In May 21st 2024, the EU's foreign ministers decided to use the windfall profits from frozen Russian assets to support Ukraine. Specifically, the funds will be used to finance selected member states' military support to Ukraine in 2025. This will include donations of ammunition, air defense and military equipment produced in the Ukrainian defense industry. 

Donations through procurement in the Ukrainian defence industry strengthen Ukraine’s own production capacity, ensure competitive prices, and enable faster adaptation to the Ukrainian needs. Furthermore, the armed forces of Ukraine will receive equipment they are already familiar with and can maintain themselves. 

"Last year, when I visited Ukraine to meet with several defence industry companies, I was convinced of the prospects for supporting Ukraine directly through procurements in the country’s own defence industry. This way, we ensure that the Ukrainians urgent military needs can be produced and delivered locally. This provides obvious logistical advantages while also contributing to building Ukraine's defence industry for the future. We are now able to do this on an even larger scale," says Troels Lund Poulsen. 

With the Danish model, Denmark was the first country to finance procurement in the Ukrainian defence industry through the Ukrainian state. In 2024, Denmark used the model to act as implementing actor on behalf of the EU for approximately 400 million euros of windfall profits from frozen Russian assets. This effort received significant international recognition. With contributions from both the EU, the Danish Ukraine Fund, and allies, Denmark successfully implemented a total of approximately 4.4 billion DKK in 2024 to finance defence procurement in the Ukrainian defence industry. 

In 2025, Denmark expects to implement more than double that amount through the model. 

Denmark has allocated a total of 3 billion DKK from the Danish Ukraine Fund for donations procured in the Ukrainian defence industry from 2025 to 2027, and will also act as the implementing actor for several other countries, including Norway, Sweden, Iceland, and Canada.