Denmark will invest approximately 1.4 billion euros ($1.6 bn) in Ukrainian defense companies this year under the so-called “Danish model,” European Pravda reported on 29 August.

Defense Minister Troels Lund Poulsen announced this figure while advocating for expanded implementation of the financing mechanism.

The Danish model involves allied nations funding weapons production needed by Ukraine through Ukrainian enterprises rather than purchasing from their own defense contractors. According to Poulsen, Denmark allocated 600 million euros ($702 mn) in such contracts last year.

“Ukrainian defense industry works very quickly compared to European companies. They can do this in months, not years. And secondly, it is financially efficient,” Poulsen said.

The minister expressed optimism about broader international adoption of this support format. “Today we heard a lot of words of support for doing more through the ‘Danish model,’ so I’m pleased to see that,” he added.

Poulsen emphasized Ukraine’s continued need for increased military assistance, describing it as an urgent requirement. 

The Danish approach represents a shift from traditional military aid models. Instead of donating existing weapons or purchasing equipment from Western manufacturers, participating countries finance production contracts directly with Ukrainian defense firms.

Former Defense Minister Rustem Umerov indicated in June that assistance to Ukraine under the Danish model would reach 1.3 billion euros ($1.5 bn) in 2025. Ukraine regularly calls on partners to increase investments in its defense industrial complex.

The model allows Ukraine to scale up domestic production capabilities while providing allies with a potentially more cost-effective means of supporting Ukrainian defense needs. Danish officials cite the speed of Ukrainian manufacturers as a significant advantage over European alternatives.