MOSCOW, June 5. /TASS/. Partners will allocate 1.3 billion euros to finance the Ukrainian defense industry under the so-called Danish model this year, Ukrainian Defense Minister Rustem Umerov said.
"Defense support for Ukraine under the 'Danish model' will scale up to 1.3 billion euros already in 2025," Umerov wrote on his Facebook (a social media site banned in Russia since it is owned by Meta corporation classified as extremist by the Russian authorities). According to the top defense official, part of these funds will come from the proceeds of frozen Russian assets.
Umerov added that Kiev is expecting the first tranche of 428 million euros from Denmark, Iceland, Canada, Norway, and Sweden in the near future. These funds will be used to finance the production of artillery, strike drones, missiles, and anti-tank weapons.
Ukrainian analysts note that the defense industry is the only sector currently experiencing growth in the country. However, the state is unable to ensure the full utilization of enterprises' capacity with its orders, which is why some factories have been standing idle for months. In this regard, Kiev is seeking funding for its military-industrial complex from its partners through direct purchases under the so-called Danish model, which implies that partner governments pay for ammunition produced at Ukrainian enterprises.
In January, Strategic Industries Minister German Smetanin said that Ukraine needs to attract between 15 billion dollars and 20 billion dollars in financing to expand its own military production. Ukraine has also established joint ventures with Western companies, including Germany's Rheinmetall AG and UK’s BAE Systems, to produce weapons.