The Danish government has announced the introduction of a new state guarantee, under which the state, through the Danish Export and Investment Fund (Danmarks Eksport- og Investeringsfond, EIFO), will cover a total of 1 billion DKK (€130 million) or up to 70% of Danish companies' investments in Ukrainian defense enterprises.
According to First Deputy Prime Minister of Economy, Yuliia Svyrydenko, this initiative aims to mitigate the investment risks for Danish companies in Ukraine's defense industry. For Danish manufacturers, it offers an opportunity to tap into Ukrainian expertise, innovations, and the chance to test weaponry in real combat conditions.
EIFO is already well known to Danish businesses, as this instrument has been actively supporting both domestic and Ukrainian enterprises. Specifically, it provides:
- Export credit guarantees—reducing risks of exporting to Ukraine by covering potential defaults on payments.
- Direct financing—providing loans to Ukrainian buyers of Danish goods and services.
- Investment capital—assisting in expanding the operations of Danish companies in Ukraine.
The tool has now been extended to support the defense industry.
"We are grateful to Denmark for its decision to support Ukraine's defense industry by encouraging investments from Danish companies," wrote Yuliia Svyrydenko.
