A landmark agreement was signed between Kyiv and Copenhagen, permitting Ukrainian defense companies to establish production facilities in Denmark. This marks a unique instance of international cooperation, enabling the export of Ukrainian defense technologies for supply to the country’s own armed forces. Following Denmark’s prior commitment to funding Ukrainian weapons production, it now becomes the first nation to host Ukrainian arms production lines. This initiative aligns with Ukraine’s broader strategy to internationalize its defense industry and scale up both domestic and international production.
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In 2025, Denmark will manage approximately €830 million in EU funds—sourced from seized Russian assets—to procure Ukrainian-produced military equipment. This builds upon the “Danish Model,” which successfully channeled €400 million in 2024 for similar purposes, garnering international acclaim. The approach prioritizes strengthening Ukraine’s defense industry by funding local production, ensuring timely delivery of needed supplies, and fostering long-term capacity building. Denmark’s commitment extends beyond 2025, with a pledged DKK 3 billion allocated through 2027, and acting as an implementing agent for several other nations.
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Ukraine’s domestic drone production surged in 2024, comprising 96.2% of all UAVs used by the Defence Forces. This significant increase, driven by Ministry of Defence orders, included a wide range of UAV types, from FPV drones to long-range strike drones. Over 1.5 million FPV drones alone were produced, showcasing a highly effective state-industry collaboration. This success underscores the growth of Ukraine’s defense industry and will continue to be prioritized in 2025.
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John Q. Hosedrinker