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Ukraine aims to raise over $1 billion for 'Danish model' of defense industry funding in 2025

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Ukraine aims to raise over $1 billion for 'Danish model' of defense industry funding in 2025
Prime Minister Denys Shmyhal in Kyiv on Feb. 26, 2024. (Eugen Kotenko/Ukrinform/Future Publishing via Getty Images)

Ukraine is planning to raise more than $1 billion in 2025 to develop the so-called Danish model of funding for Ukraine's defense production, Prime Minister Denys Shmyhal said on Jan. 3.

Denmark became the first country to offer to donate arms to Ukraine via direct purchases from the Ukrainian defense industry, as Kyiv's defense budget does not match the capacities of domestic weapons production.

Shmyhal also said that Ukraine aims to expand its domestic defense production capacity to $30 billion next year.

"The Danish model of cooperation is not only solidarity but also determination to support our struggle for freedom and sovereignty," said Deputy Defense Minister Dmytro Klimenkov.

Last year, Ukraine produced 18 domestically-developed Bohdana self-propelled howitzers financed by Copenhagen.

Kyiv has so far received over 150 million euros ($156 million) in funding from Denmark, France, and Lithuania to bolster its defense industry, Defense Minister Rustem Umerov said in late December.

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Kateryna Denisova

Politics Reporter

Kateryna Denisova is the reporter for the Kyiv Independent, specializing in Ukrainian politics. Based in Kyiv, she focuses on domestic affairs, parliament, and social issues. Kateryna began her career in journalism in 2020 and holds a bachelor's degree in journalism from Taras Shevchenko National University of Kyiv. Before joining the team, she worked at the NV media outlet. Kateryna also studied at journalism schools in the Czech Republic and Germany.

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