Danish Minister of Defense Troels Lund Poulsen speaks to the media after arriving for the meeting of EU foreign ministers and defense ministers at the European Council building in Brussels, November 14, 2023. AP/Virginia Mayo
By the end of 2025, Denmark plans to invest about €1.4 billion directly in Ukrainian defense companies. This stance was voiced by Denmark’s Minister of Defence Troels Lund Poulsen during a press conference following the informal meeting of EU defence ministers in Copenhagen.
“In the long term, costs will be much higher”
– Troels Lund Poulsen
According to Poulsen, Ukraine needs more active military support, and any delay could lead to costs in the future becoming significantly higher.
Last year Denmark invested around €600 million under the “Danish model” directly in Ukrainian defense companies, signaling Kyiv and Copenhagen’s long-standing commitment to cooperate in the defense industry.
“The Ukrainian defense industry is producing very fast compared to European companies. They are able to manufacture in months, not years. And, secondly, this is also a very cost-effective model. Therefore we must do even more in this area. We hope more countries will support us”
– Troels Lund Poulsen
Furthermore, the head of the defense ministry expressed hope that within a few weeks the first Ukrainian defense company will begin production in Denmark, and subsequently other enterprises in Ukraine’s defense sector will join it.
“I think this will also be a step forward in providing even greater support to Ukraine”
– Troels Lund Poulsen
As a reminder, on August 27 it became known that Denmark would allocate to the Ukraine Foundation at least DKK 500 million (over €41 million) to attract investments into the Ukrainian economy. In particular, these funds will be directed to guarantee Danish companies’ investments in Ukraine’s reconstruction projects through the Export- and Investment Fund of Denmark (EIFO).
A Look at Future Cooperation and Its Impact on the Economy
The new financial steps by the Danish government indicate a systematic approach to supporting Ukraine through the defense sector: ramping up production, introducing Ukrainian technologies to the European market, and using EIFO’s financial instruments to attract investments in the reconstruction and modernization of Ukrainian enterprises.
Analysts emphasize that close cooperation between Danish and Ukrainian companies could shorten production launch times and increase the economic efficiency of projects in the military and post-war spheres, while strengthening the defense industries of both countries.