Denmark was the first foreign partner to start direct financing of Ukrainian defense companies. Ukraine can lessen its reliance on foreign aid by using this collaboration model, which is a more cost-effective and productive method for manufacturing contemporary weaponry.

The first artillery systems produced through this collaboration have already been delivered to the Ukrainian Armed Forces. The primary cooperative project focused on producing Bohdana self-propelled artillery systems for the Ukrainian Armed Forces. The production was financed by the Government of Denmark.

During the visit of Danish Defense Minister Troels Lund Poulsen to Kyiv, Deputy Defence Minister Dmytro Klimenkov discussed this support format for the Ukrainian defense industry with the foreign delegation.

Dmytro Klimenkov explained the functioning of the Ukrainian defense industry support system based on the ‘Danish model’:

•⁠ ⁠The Ukrainian side prepares a list of projects that are seeking funding;
•⁠ ⁠Danish experts examine the recommended companies, assess their capabilities, and review their track record in completing projects.

The key criterion is meeting the priorities set by the Armed Forces of Ukraine.

“The ‘Danish model’ is a low-cost and efficient strategy for manufacturing modern weapons and ammunition. Due to the global shortage in weapon production capabilities, Danish assistance in upgrading the Ukrainian military sector is crucial. To us, this means securing our defense independence and fostering our economic development. We have our own facilities, and we are given access to technologies. Localized defense production in Ukraine will not only reduce dependence on foreign supplies but will also allow us to be more flexible in responding to the needs of the frontline and quickly adapt the production of weapons to the requirements of combat operations,” said Dmytro Klimenkov.

Dmytro Klimenkov urged other partner nations to adopt the Danish approach and participate in the program.

Currently, under the program, Denmark is set to secure around €600 million, with €175 million coming from the Government. Another €400 million will come from supernormal profits from frozen russian assets.