The European Union’s recent decision to invest $440 million in Ukraine’s rapidly expanding arms industry “marks a significant shift in the bloc’s approach to Russia’s war against its neighbor, but also highlights the EU defense sector’s shortcomings in producing weapons and ammunition,” The Washington Post says. This investment comes from the profits of Russian assets frozen in the West.
In addition to the EU funding, the Danish government is providing an extra $190 million to support Ukraine’s defense sector.
The EU’s assistance is part of a larger $1.5 billion package taken from the proceeds of Russian frozen assets, approved in May. Additionally, the EU’s executive arm recently announced a plan to loan Ukraine up to $38 billion, again backed by the windfall profits of the frozen Russian assets.
The funding is expected to be directed towards producing “missiles, drones” and other “deep-strike weapons,” according to an anonymous European official cited by The Washington Post. President Volodymyr Zelenskyy has mentioned recently that Ukraine is carried out successful flight tests of its first ballistic missile.
Earlier, Ukraine’s Prime Minister Denys Shmyhal reported that his country tripled its arms production in 2023 and doubled that figure in the first eight months of 2024. Defense Minister Rustem Umierov stated that approximately $4 billion was allocated to the country’s arms industry this year. However, Economy Minister Yulia Svyrydenko noted that Ukraine’s defense sector has the capacity to produce significantly more, estimating a potential output of $10-12 billion.
Denmark will manage the combined $630 million in Danish and EU funding through a “Danish model,” which allows Ukraine’s Defense Ministry to prioritize its needs. Dennis Virkelyst, who runs the Ukrainian team at the Danish Defense Ministry, stated that there would be “no red lines from our side” restricting where the weapons could be used, WP says.
Related:
- Umierov: Russia will feel positive news on long-range weapons on the front
- European parts still reaching Russian ships despite sanctions, BBC finds
- Denmark and Ukraine sign $ 629 mn arms procurement agreement
- Danish Prime Minister warns against talks of exchanging Ukrainian territories for peace
- Frederiksen: Let’s end the red lines discussion, Russia crossed most important one, entering Ukraine
- Ukraine receives €40.7 million from Denmark for domestic howitzers production
- EU funds Ukrainian defense industry with €400 million from frozen Russian asset proceeds
