The model boosts closer-to-the-front production, allowing for rapid acquisition. 

The Danish Model has been widely lauded as an effective approach to supporting Ukraine and its war effort, with many countries, including Lithuania and the Netherlands, adopting it.  

Established in 2024 by Ukraine and Denmark, the model involves directly funding Ukrainian companies, rather than donating military equipment to the country. 

This allows for closer-to-the-front production, and therefore significantly reduced delivery times. It also bolsters Ukraine’s domestic industry in the long-term, by reducing reliance on donated systems. 

The model was initially developed by Ukraine’s Ministry of Strategic Industries and the Danish Government in direct response to Ukraine's appeal for increased support. 

Emphasising this, Denmark’s Minister of Defence, Troels Lund Poulsen, said he “was convinced of the possibilities of supporting Ukraine through procurement directly via the Ukrainian defence industry” following a visit to the country. 

This “effective and transparent” approach collectively delivered EUR590 million worth of weapons to Ukraine in 2024 from several different countries and organisations, the Danish Ministry of Defence (MoD) told DSEI Gateway.  

These entities include Denmark, Iceland, and Sweden as well as the European Peace Facility.  

Interestingly, this financial investment supplied through the Danish Model in 2024 only represents around 0.45% of the total military donations to Ukraine since the full-scale invasion began in 2022 (up to April 2025). However, it brings additional benefits for the sustainability of Ukraine’s supply chains and the development of its industry. 

Recognising its benefits, the Ministry of Defence of Ukraine said the model has delivered “fast delivery times”, “competitive prices”, and “the possibility of organising training and maintenance near the front”. 

How does it work? 

Put simply, “Ukraine forms a list of projects requiring financing, and Danish experts check the recommended companies” before assessing their “capacity and experience in contract implementation”, the Ministry of Defense of Ukraine said in January. 

At its most general level, the model aims to bolster support of the Ukrainian Armed Forces.  

It achieves this by directly increasing “the production capacity of the Ukrainian defence industry”, rather than going direct to other European suppliers.  

This ensures “the swift delivery” of equipment by enabling production closer to the point of need. It also aims to remain laser-focused on the capabilities most in demand by Ukraine’s forces. 

In addition, it reduces the training burden attached to buying foreign equipment as warfighters can use technology they are familiar with. And it looks to “ensure that Ukraine is able to sustain and maintain the capacities” well into the future, the spokesperson explained. 

Notably, “all donations through the Danish Model are based on Ukrainian recommendations and priorities”, the spokesperson said, adding that “a number of checks and balances are set up to minimise the risk of misuse of funds”. 

What contributions are being made? 

In 2024, the model financed EUR590 million worth of equipment, including “Bohdana artillery systems, long-range strike drones, anti-tank missiles and systems, and anti-ship missiles”, the spokesperson added. 

Going forward, many countries, including Canada, Denmark, Iceland, Norway and Sweden have all pledged “substantial financial contributions to the model” this year – a sign of its growing success.  

The success of the initiative was further highlighted this year when the EU entrusted Denmark with delivering more than EUR800 million of European Peace Facility funds via the Danish Model.  

The European Peace Facility is a funding instrument which, since Russia’s full-scale invasion of Ukraine in February 2022, has been used to deliver aid to Ukraine. It has a total ceiling value of more than EUR17 billion between 2021-2027.  

“Denmark also expects to remain as implementing actor on behalf of the EU, allocating Russian windfall profits to [the] Ukrainian defence industry in 2025”, according to the spokesperson.  

Commenting on the initiative in January, Ukraine’s Defence Minister Rustem Umerov said: “We hope that Denmark's example will inspire other countries to adopt similar initiatives, as this will contribute to the future security of Europe and the world.” 

More recently, Umerov said he expects the model to scale up to EUR1.3 billion in contributions in 2025. 

This marks a substantial increase compared with the model’s initial contribution of EUR590 million to Ukraine the previous year, highlighting its growing credibility. The increasing contributions will also help to bolster Ukraine’s defence industry, which now produces around 40% of its weapons domestically – up from 10% before the full-scale invasion in 2022.