Denmark has funded the production of 18 Bohdana SPHs in Ukraine (pictured being fired by Ukraine's 43rd Separate Mechanised Brigade in the Kharkiv region on 21 April). (Anatolii Stepanov/AFP via Getty Images)
Denmark signed a memorandum of understanding (MOU) with Ukraine on 29 September to support the war-torn country's defence industry, the two countries' ministries of defence (MoDs) announced on their websites later the same day.
Under the agreement signed by Danish Defence Minister Troels Lund Poulsen, his Ukrainian counterpart, Rustem Umerov, and Ukrainian Minister for Strategic Industries Herman Smetanin, Denmark is allocating nearly DKK4.2 billion (USD622.5 million) to Ukrainian defence production. It will contribute DKK1.3 billion of this amount, with the remaining DKK2.9 billion coming from Russian assets frozen by the European Union (EU).
Frozen assets
Responding to Janes questions about the funding, an EU spokesperson noted that the EU Council decided in May “to use windfall profits generated by immobilised Russian assets, [and] the first transfer of EUR1.5 billion (USD1.65 billion) to the European Commission occurred on 23 July 2024. Approximately 90% of this money is being channelled through the European Peace Facility (EPF) to reinforce the defence capabilities of the Armed Forces of Ukraine in the areas of air defence, artillery, and ammunition.
“Support is provided through implementing actors identified and agreed within the EU, on the basis of Ukraine's requests. Given the operational sensitivities, we do not disclose at this stage further details, but we can confirm that Denmark is one of the implementing actors that will use part of these funds for the provision of ammunition, as they have announced. The amount that each member state will receive depends on the value of the equipment to be provided.
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