Ukraine’s defence gets major boost as West pledges €1.3 billion under “Danish model”

Ukrainian Defence Minister Rustem Umerov has announced that Western partners are set to allocate €1.3 billion in 2025 to support Ukraine’s defence industry, following the framework known as the “Danish model.”

Minister Umerov made the announcement on his official Facebook page, Caliber.Az reports.

“Defence support for Ukraine under the ‘Danish model’ will be scaled up to €1.3 billion already in 2025,” Umerov stated. He further revealed that a portion of these funds will be sourced from the proceeds of frozen Russian assets, underscoring the strategic repurposing of seized resources to bolster Ukraine’s military capabilities.

The minister also confirmed that Ukraine anticipates receiving the first tranche amounting to €428 million from a coalition of countries including Denmark, Iceland, Canada, Norway, and Sweden. This initial funding round is earmarked for the domestic production of critical military hardware such as artillery systems, attack drones, missiles, and anti-tank weaponry.

“The 'Danish model' is a unique mechanism for direct support of the Ukrainian defence industry. It reflects trust in our army, recognition of our manufacturers' capabilities, and a real contribution to strengthening Ukraine’s Defence Forces,” Umerov noted.

“We are also preparing new strategic decisions - both for investments of Ukrainian companies in the Ramstein countries and for the deployment of production facilities of European defence companies in Ukraine," Umerov wrote.

By Vafa Guliyeva