Denmark May Invest in Ukrainian Drone Factories with Income from Frozen Russian Assets

Denmark may be considering investing income from frozen Russian assets in Ukrainian companies that manufacture drones and other military hardware.

Danish Defense Minister Troels Lund Poulsen was in Ukraine on September 13-14 to visit companies that produce long-range drones for Ukraine's defense, a Danish MoD release said.

These drones have become hugely effective in hitting targets deep inside Russia such as airfields, arms factories, weapons and troop convoys, supply ships and other military  infrastructure.

Denmark is already investing in the Ukrainian defense industry and has most recently financed the production of 18 ‘Bohdana’ artillery pieces produced in Ukraine which have been handed over to the Ukrainian Army.

Following Denmark's initiative to invest directly in Ukraine's defense industry, the EU Commission has asked the Danish government to lead the work to convert frozen Russian assets into Ukrainian defense industries.

"It is still important, but no longer sufficient, to exclusively send military donations to Ukraine. At the same time, we need to invest directly in Ukraine's defense industry. We did that when we invested in 18 Bohdana artillery pieces just a few months ago.

I am very pleased that the EU Commission recognizes the so-called Danish model and is now calling on other member states to also invest directly in Ukraine's defense industry," the release quoted Defense Minister Troels Lund Poulsen as saying.

Denmark has decided to earmark 1.3 billion DKK from the Ukraine fund for acquisitions by the Ukrainian defense industry.

Denmark must also, as part of the EU's so-called windfall mechanism, be responsible for disbursing a total of 394.6 million euros corresponding to approx. 2.9 billion DKK of frozen Russian assets.