Russian armed aggression against Ukraine prompted the international community to unite in providing comprehensive support to Ukraine in its struggle against Russia. Over the course of the full-scale invasion, partners developed various mechanisms for providing military, financial, and diplomatic assistance.
One of these mechanisms is the so-called "Danish Model." This approach allows partner countries' funds to be directed towards the production of Ukrainian weapons to meet the prioritized needs of the Ukrainian army.
The Ministry of Defense explains the specifics of this cooperation format, its participants, and other similar mechanisms for supporting the Ukrainian army.
What is the "Danish Model"?
In 2024, Ukraine and Denmark introduced a new mechanism for financing the purchase of weapons for the Ukrainian Armed Forces through the reimbursement of contracts with Ukrainian manufacturers. Under this scheme, Ukraine forms a detailed list of projects requiring funding, while Danish experts conduct a thorough evaluation of the capabilities of the recommended companies and analyze their prior experience in fulfilling contracts. As early as 2023, Ukraine's defense industry significantly expanded its production capacities. However, the country faced two significant challenges: limited state expenditures for weapon contracting and the gradual reduction of international military aid.
By that time, partner countries had already transferred a significant portion of available stockpiles, but their production capacities had not yet adapted to new needs. In this context, the "Danish Model" offered an effective solution: directing financial resources from allies directly into Ukraine's defense industry, which quickly proved to be effective.
The uniqueness of this approach lies in the fact that it not only ensures the prompt supply of necessary weapons to Ukrainian soldiers but also creates a powerful incentive for the development of the domestic defense industry. This, in turn, significantly strengthens Ukraine's economic resilience in a state of war and forms a solid foundation for the further development of its defense industry.
Why is it Called the "Danish Model"?
The name of this mechanism is directly linked to Denmark's pivotal role in its development and implementation. Denmark became the pioneer in introducing a system of direct financing for Ukrainian defense enterprises, establishing a fundamentally new format for cooperation between partners and Ukraine in the defense sector.
The decision to initiate this mechanism was made after Denmark's stockpiles of weapons available for transfer to the Ukrainian military were depleted.
Which Projects Have Been Implemented Under the "Danish Model"?
In the first stage, Denmark allocated a tranche of 50 million euros, which was directed towards the production of 18 self-propelled artillery systems "Bogdana." The result came quickly: just two months after the implementation agreement was signed, the equipment was delivered to combat units of the Defense Forces.
Later, the funding was expanded to establish the production of other strategically important weapons, including long-range drones, anti-tank, and anti-ship missile systems.
As a result of the coordinated work of all participants in the initiative, the Ukrainian Armed Forces have already received weapons totaling nearly 597 million euros. Of this amount, 175 million euros came directly from Denmark.
Which Countries Have Supported the "Danish Model"?
The successful implementation of the "Danish Model" led to the expansion of funding for Ukraine's defense industry by other countries. In 2024, Sweden and Iceland joined the mechanism. The parties provided financial support to the initiative amounting to 20 million euros and 2.7 million euros, respectively – directly through Denmark. An additional outcome was the decision to finance the production of Ukrainian weapons using the interest from frozen Russian assets. In 2024, 390 million euros were directed towards these needs. This became possible thanks to active diplomatic support and assistance from the Danish government, which once again emphasizes the strategic importance of this partnership.
What is Planned for the "Danish Model"?
For 2025, the EU allocated 1 billion euros from the proceeds of frozen Russian assets, and Canada allocated around 67 million euros. Denmark has also reserved 130 million euros for further investments in Ukraine's defense industry. Additionally, Norway is expected to provide around 43 million euros for projects under this initiative, while Sweden announced an allocation of $178 million.
The "Danish Model" will focus on expanding the range of produced weapons. Special attention will be given to the manufacture of high-tech long-range drones, modern missile systems, and artillery systems.
It is important to note that the "Danish Model" will benefit not only individual manufacturers but the market as a whole. Financing a single enterprise allows the Ministry of Defense of Ukraine to redirect freed-up funds towards the purchase of other weapons.
Simultaneously, the Ministry of Defense is working on scaling the "Danish Model" for the production of rear support goods. The implementation of this initiative could significantly accelerate the provision of necessary supplies to the Defense Forces.
What Other Models Exist for Financing Ukraine's Defense Industry?
Alongside the "Danish Model," other mechanisms for supporting the Ukrainian Armed Forces are actively functioning. Traditionally, partner countries provide weapons directly from their arsenals and participate in joint military equipment servicing programs and comprehensive training for Ukrainian soldiers. Another important form of cooperation is the creation of joint defense enterprises in Ukraine, of which there are about 40. Among the partners are global leaders such as German Rheinmetall AG, Franco-German KNDS, and American Boeing. These enterprises not only provide production and servicing of advanced military technology and ammunition directly in Ukraine but also contribute to attracting significant investments into the country’s economy.
