Iceland has transferred over €2 million to Ukraine’s Energy Support Fund, bringing its total contribution to more than €5.6 million, the country’s Ministry of Energy reported.
Since 2022, Iceland has demonstrated solidarity with Ukraine and sent nearly €18 million in defense aid and €20 million in economic and humanitarian support during the first two years of the war. In 2024, Iceland signed a bilateral security agreement with Ukraine, formalizing long-term commitments aligned with the G7 Vilnius Declaration. Additionally, the country has pledged at least €27.5 million annually through 2028, doubling its defense support in 2025.
Between 2023 and 2024, Iceland made four previous contributions to the fund, which were used to purchase essential equipment for fuel and energy sector enterprises in Donetsk, Zaporizhzhia, and Kherson regions.
Ukraine’s Energy Support Fund was established in April 2022, and pledged contributions from international partners have now exceeded €1 billion. The fund’s donors include both public and private sectors from over 30 countries, including EU member states, the UK, and the US, as well as international and regional organizations.
According to the Ministry of Energy, the fund has proven to be an effective mechanism for international assistance in the energy sector. It enables Ukrainian energy workers to restore infrastructure damaged by Russian attacks, carry out repairs, and install new power facilities.
In 2025, the Ukrainian Ministry of Foreign Affairs reported that the government of Iceland allocated over €2 million to support the production of Ukrainian weaponry.
This funding aligns with the “Danish model,” a mechanism pioneered by Denmark to finance Ukrainian arms production instead of buying weapons from foreign companies.
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