Denmark to Finance Weapons Production in Ukraine with Interest from Russian Frozen Assets

The EU has put Denmark in charge of disbursing parts of the interest income from frozen Russian assets  to be used for military support for Ukraine.

Denmark will be responsible for realizing approx. 2.9 billion DKK (US$435 million) through the so-called Danish model, where donations are financed via Ukraine's defense industry.

EU member states decided in the spring to use part of the interest income from frozen Russian assets to support Ukraine's defense struggle through the European Peace Facility, a Danish MoD release said.

Denmark must be responsible for disbursing parts of the funds. Concretely, Denmark will have to sell approx. 2.9 billion DKK for military support to Ukraine through the so-called Danish model, where the funds are to finance donations via Ukraine's defense industry.

"I am pleased that the EU recognizes the Danish model for direct support of Ukraine. Denmark has already reserved DKK 1.2 billion. kroner for direct support to the Ukrainian defense industry. It ensures faster and more effective support close to the front line. The interest income from the frozen Russian assets can make a significant difference for the Ukrainians", says Defense Minister Troels Lund Poulsen.

The interest income from frozen Russian assets must be used for the benefit of Ukraine's defense struggle, he added.

"During a visit to Ukraine earlier this year, I saw tests of the first Bohdana howitzers, which will benefit the Ukrainians at the front. As Danish Defense Minister, I am of course proud that the Danish model must now also be used to implement EU support, so that we can best support Ukraine's defense industry", says Defense Minister Troels Lund Poulsen.

The proceeds from frozen Russian assets are not only to be used in Ukraine's defense industry. They must also be translated into two other tracks aimed at procurement of ammunition and artillery systems as well as procurement of air defense.