Denmark plans to create a fund to finance weapons production in Ukraine

Denmark plans to create a fund to finance weapons production in Ukraine. It will combine investments from different countries to expand and accelerate production.

This was stated by Defense Minister Troels Lund Poulsen, RBC-Ukraine reports citing Bloomberg.

Poulsen explained that weapons production in Europe and the United States is currently “too slow,” and Ukraine could arm itself much faster if it produced more military equipment at home. He emphasized that weapons production in Ukraine could reduce delivery times from years to months.

According to him, Denmark is already working to channel donations directly to Ukraine's defense industry and is now exploring options for raising additional capital.

“In recent years, we have taken many initiatives to increase the production of various military equipment... But in general, we are nowhere near the rate of production of military equipment as in Ukraine,” Poulsen said.

In particular, the Danish government is considering creating a fund by the end of this year. It is intended to combine public and other investments to expand and improve Ukraine's weapons production capacity.

Investors, which may include pension funds and defense companies, will receive a share of ownership, access to knowledge, and the opportunity to create joint ventures with Ukrainian manufacturers.

The defense minister also dismissed suggestions that the strategy would cost jobs elsewhere, saying it was an opportunity for European arms companies to cooperate with Ukrainian industry in production and learn from it to improve their own capabilities.

“We are facing a historic rearmament of both Denmark and Europe... We will see a lot of jobs created in the European defense industry,” Poulsen said.

Author - Olena Madiak, 12/10/2024