“Give Ukrainian defense companies more money”: Denmark’s direct procurement model shows path for European security

Ukraine is now significantly less dependent on foreign weaponry, yet its military success could be further enhanced with greater involvement from the EU, The Economist writes. 

One way to meet Ukraine's defense needs is by supplying more European-made equipment, but this is challenging as many European defense companies are hesitant to ramp up production without long-term contracts.

Instead, European governments should focus on military aid that supports Ukraine's defense industry. One potential solution is for European nations to directly purchase weapons from Ukrainian manufacturers. Furthermore, the EU could incentivize joint ventures between European and Ukrainian companies through contracts or joint investments.

Such collaborations would not only help Ukraine develop faster and more accurate offensive missiles but also address its critical shortfall in anti-aircraft missile systems capable of intercepting incoming Russian missiles. This would also allow both Ukraine and the EU to gain valuable experience in countering drones.

"Contracting with Ukraine and setting up joint ventures with its firms would be a cost-effective way to mitigate the end of American assistance. Individual European countries, led by Denmark, have already started down this path. These efforts need to be built on. Give Ukrainian defense firms more money, and they will make their own tools to keep Russia at bay," the report says. 

Earlier, the Swedish government announced it would fund Ukrainian weapons production through the Danish model. According to a government statement, the financial support could potentially be used for producing 155 mm ammunition or the Ukrainian Bohdana artillery system.