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Ukraine’s defense industry receives € 390 million from frozen Russian assets under Danish model

An innovative funding model pioneered by Denmark channels frozen Russian assets into Ukraine’s defense production, creating a sustainable support mechanism beyond traditional military aid.
byOlena Mukhina
10/01/2025
2 minute read
Bohdana howitzer
Ukraine’s Bohdana at 2018 Independence Day parade. Photo: tsn.ua
Ukraine’s defense industry receives € 390 million from frozen Russian assets under Danish model

Ukraine’s Ministry of Defense says that in 2024, the country’s military received weaponry worth nearly €538 million through Danish model agreements.

The approach to Ukraine’s aid is called the “Danish model,” was pioneered by Denmark, which allocated $680 million, largely from frozen Russian assets, to fund Ukrainian production. Denmark developed the mechanism after having donated almost all of its available weaponry to Kyiv. Copenhagen plans to deliver the funds by year’s end and aims to provide at least $1.4 billion in 2025.

In 2024, the funding sources for Ukraine’s defense industry included €125 million from Denmark through its national Ukraine Fund, €20 million from Sweden, €2.7 million from Iceland, and €390 million from interest on frozen Russian assets.

“We are grateful to Denmark for its leadership, unwavering support, and the effective implementation of the ‘Danish model’ of cooperation with Ukraine’s defense industry,” said Ukrainian Defense Minister Rustem Umerov.

He added that the purchased equipment is already proving its effectiveness on the battlefield, strengthening Ukraine’s ability to resist the enemy and bring victory closer.

Under the Danish model, Ukraine identifies priority projects requiring funding, while Danish experts vet recommended companies and assess their capacity and experience to fulfill contracts.

“I am very proud of the cooperation between Denmark and Ukraine under the Danish model. I am also impressed by the speed and efficiency of Ukraine’s defense industry. Critical support is either already at the frontline or on its way, and I hope more countries will consider supporting Ukraine through its defense sector,” said Danish Defense Minister Troels Lund Poulsen.

The Ministry of Defense also announced that Denmark will continue its support in 2025, reserving €135 million for further procurement from Ukraine’s defense industry. Additionally, Norway plans to contribute approximately €43 million.

In late December, Ukraine received over €150 million from Denmark, France, and Lithuania to fund its defense-industrial complex.

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