WP: EU invests in Ukraine’s arms sector as Europe fails to meet supply needs

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.

The EU’s contribution is part of a larger effort to address shortages in Western weapons production and enhance Ukraine’s ability to manufacture its own defense equipment. While Europe and the US have supplied billions in weapons to Ukraine, their defense industries, accustomed to fewer conflicts, have struggled to meet Ukraine’s demand, WP notes.

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.

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