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Ambassador: EU to use Danish model to channel € 1 billion from frozen Russian assets into Ukrainian defense industry

Following Denmark’s successful model of directly funding Ukrainian arms manufacturers, the European Union will redirect the funds to boost Ukraine’s domestic defense industry.
byOlena Mukhina
11/04/2025
3 minute read
European Union Flags. Credit: Wikimedia Commons/Thijs ter Haar.
Flags of the European Union, illustrative image. Credit: Wikimedia Commons/Thijs ter Haar.
Ambassador: EU to use Danish model to channel € 1 billion from frozen Russian assets into Ukrainian defense industry

EU member countries will use €1 billion, generated from the revenue of frozen Russian assets, to purchase weapons, ammunition, and air defense systems for Ukraine under the Danish model, says the EU Ambassador to Ukraine, Katarina Maternova, according to Interfax-Ukraine.

Denmark has signed agreements to procure arms directly from Ukrainian manufacturers and supports local production to enhance Ukraine’s self-sufficiency in defense capabilities. This approach ensures faster production and delivery of equipment tailored to frontline needs. The Danish model has encouraged other countries, such as Norway and Sweden, to adopt similar strategies. 

This week, the European Commission will receive €2.1 billion in unforeseen revenue from frozen assets of the Russian central bank held in central depositories.

“Most of the funds will be used for the purchase of weapons, ammunition, and air defense systems for Ukraine in the form of grants,” Maternova notes. 

As the ambassador explains, part of the funds will be allocated to EU member states for the procurement of ammunition and air defense systems. In total, of the €2.1 billion, €1 billion will go to Ukraine’s defense industry under the “Danish model.”

Maternova reminded that in August of last year, the EU had already invested €400 million into Ukraine’s defense industry.

“This time, the EU will provide €1 billion in grants for the defense industry. Contract preparations are currently underway,” she adds. 

Earlier, Ukrainian Defense Minister Rustem Umerov said that Kyiv was exploring the possibility of hosting the next meeting of leading nations in the Ramstein format in Ukraine, involving representatives from the Ukrainian forces and the defense industry. 

By engaging its defense industry and security forces directly with partners, Kyiv aims to strengthen its position within European defense production and security frameworks. This integration is beneficial as it allows Ukraine to contribute its battle-tested expertise and enhance Europe’s collective defense capabilities, particularly at a time when the US role in European security is decreasing.

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