Danish fund offers $140 mn shield for defense investments in Ukraine

 

Denmark has introduced a state-backed guarantee mechanism to encourage investment in Ukraine’s defense sector, offering to cover up to 70% of investments through the Danish Export and Investment Fund (EIFO). The initiative was announced on March 25 by Ukraine’s First Deputy Prime Minister and Economy Minister, Yulia Svyrydenko.

This guarantee scheme provides significant financial security, covering approximately €130 million ($140 million) in investments. By reducing risks, it aims to attract Danish companies looking to expand into Ukraine’s defense industry.

Svyrydenko emphasized the advantages of the program, stating that Danish investors would gain access to Ukraine’s military expertise, technological innovations, and opportunities to test weapons under real combat conditions.

EIFO offers various financial tools to facilitate investment, including export credit guarantees, direct loans for Ukrainian buyers of Danish products and services, and capital for expanding Danish companies’ presence in Ukraine.

The initiative builds on prior agreements between Ukraine and Denmark. In November 2024, the two countries established a fast-track investment mechanism designed to eliminate bureaucratic obstacles and streamline Danish business entry into Ukraine.

Denmark’s Business Minister, Morten Bedskov, reaffirmed the government’s commitment to supporting these efforts, stating that at least 300 million Danish kroner (approximately $43 million) would be allocated to the Danish-Ukrainian Fund to stimulate corporate investments. This agreement follows an April 2024 memorandum, which initially earmarked €40 million ($44 million) for EIFO and an additional €380 million ($419 million) for critical infrastructure projects, particularly in the renewable energy sector.

Denmark has been a steadfast supporter of Ukraine since the full-scale Russian invasion in 2022. The country has provided substantial military assistance, including weapons, equipment, and comprehensive training programs for Ukrainian troops. Through the Ukraine Fund, Denmark has committed approximately $9 billion in aid between 2023 and 2028, reinforcing its role as a key ally in Ukraine’s defense and reconstruction efforts.