United to win: Denmark to invest $130 mln in Ukraine's defense-industrial sector
Photo: fmn.dk
Denmark plans to allocate 130 million euros to support its companies investing in Ukraine's defense-industrial sector.
The First Deputy Prime Minister – Minister of Economy, Yuliia Svyrydenko, stated this.
As reported, the Danish government announced the introduction of a new program under which the state, through the Danish Export-Investment Fund (EIFO), will compensate up to 70% of its companies' investments in Ukrainian defense enterprises.
The fund covers the program with a total amount of 130 million euros. According to the head of the department, EIFO actively supports business in both its country and Ukraine. In particular, through:
- export credit guarantees – reducing export risks to Ukraine by covering possible payment defaults;
- direct lending – providing loans to Ukrainian buyers of Danish goods and services;
- investment capital – promoting the expansion of Danish companies' activities in Ukraine.
"EIFO is well acquainted with Danish business, because thanks to this tool, they are already actively supporting both their country's and Ukrainian businesses," Svyrydenko noted.
This way, Denmark mitigates the risks of Danish companies' investments in the Ukrainian defense industry.
"For Danish manufacturers, this is an opportunity to attract Ukrainian experience, innovations, and the ability to test weapons in real combat conditions," the Minister of Economy said.
For reference:
At the end of September 2024, it became known that Denmark would invest 4.2 billion Danish kroner (almost $630 million) in the Ukrainian defense industry. According to President Volodymyr Zelensky, Denmark is the first country with which Ukraine began joint weapons production.
Thanks to the "Danish model", which provides direct financing for manufacturers, Ukraine has already received 50 million euros. These funds financed the production of "Bohdana" self-propelled artillery mounts for Ukraine's armed forces.
Lithuania has adopted the "Danish model" for Ukraine. It will invest 10 million euros in the Ukrainian long-range missile-drone "Palianytsia".
In total, Ukraine has received more than 150 million euros (6.5 billion UAH) from Denmark, France, and Lithuania to finance the Ukrainian defense-industrial complex.
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