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Euromaidanpress
Euromaidan Press
25 Mar 2025
Maria Tril


Danish fund offers $140 mn shield for defense investments in Ukraine

Denmark’s export fund will cover up to 70% of investments in Ukraine’s defense sector.
flags of Ukraine and Denmark.
The flags of Ukraine and Denmark. Source: Novynarnia
Danish fund offers $140 mn shield for defense investments in Ukraine

Denmark introduced a state guarantee mechanism to support Ukrainian defense investments, covering up to 70% of investments through the Danish Export and Investment Fund (EIFO), first deputy prime minister and economy minister Yulia Svyrydenko announced on 25 March.

The state guarantee covers approximately €130 million ($140 million) in investments, significantly reducing risks for Danish companies exploring opportunities in Ukraine’s defense sector.

“This initiative provides Danish investors access to Ukrainian expertise, innovations, and the unique opportunity for weapons testing in actual combat conditions,” Svyrydenko said.

The EIFO fund offers multiple financial instruments, including export credit guarantees, direct loans to Ukrainian buyers of Danish goods and services, and capital for expanding Danish firms’ operations in Ukraine.

In November 2024, Ukraine and Denmark agreed on a fast-track investment mechanism. This streamlined approach eliminates administrative barriers, making it easier for Danish businesses to enter the Ukrainian market.

Danish Business Minister Morten Bedskov highlighted the government’s commitment, saying that at least 300 million Danish kroner (approximately $43 million) will be allocated to the Danish-Ukrainian Fund to stimulate corporate investments.

The agreement builds on a previous memorandum from April 2024, which initially outlined €40 million for EIFO and €380 million for supporting critical infrastructure, particularly in renewable energy sectors.

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