European allies are shifting their approach to arming Ukraine by financing deals with Ukrainian manufacturers facing funding challenges, reports The Wall Street Journal.

This approach, called the “Danish model,” was pioneered by Denmark, which allocated $680 million, largely from frozen Russian assets, to fund Ukrainian production. Denmark developed the mechanism after having donated almost all of its available weaponry to Kyiv. Copenhagen plans to deliver the funds by year’s end and aims to provide at least $1.4 billion in 2025.

The new approach includes producing equipment like long-range missiles and drones. Under this mechanism, Kyiv advises its partners on which companies to work with and what armaments to purchase while the allies independently vet producers.

Ukraine will still rely on Western allies for advanced weapons like Patriot interceptors, but officials say the new method enables faster and larger-scale procurement compared to waiting for European weapons to be produced.

Ukraine’s defense industry currently operates at just 30% capacity due to funding shortages, yet it can adapt quickly to frontline needs. The mechanism is expected to facilitate faster manufacturing and delivery of critical defense equipment, reinforcing Ukraine’s military efforts against ongoing aggression.

Danish Defense Minister Troels Lund Poulsen has highlighted the model’s benefits: faster deliveries, bolstering Ukraine’s defense sector, and reducing reliance on donations. Rigorous audits and oversight minimize corruption risks and ensure compliance with agreements.

“Copenhagen inspects recipients before approving funds and defense attachés from the Danish Embassy follow up to ensure companies deliver as agreed. So far, no company has failed the control. The approach may also reduce pressure on allies to pull weaponry from their own arsenals,” said the report.

Earlier, Ukrainian President Voldodymyr Zelenskyy said Ukraine’s production of artillery and mortar shells in the first half of 2024 outpaced the numbers of 2022 by 25 times, as per the President’s Office.

The total number of drones Ukraine is currently capable of producing annually is 4 million, and over 1.5 million have already been contracted.

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