Ukraine to raise billion dollars for "Danish model" of arms procurement

Ukraine will develop the Danish model, according to which partners buy weapons from the Ukrainian defence industry for the Ukrainian forces’ needs. This programme is expected to attract more than a billion dollars by 2025.

Source: Ukrainian Prime Minister Denys Shmyhal

Quote: "In the security sector, we will also pay special attention to the development of a shelter system based on the Finnish model. This is a public-private partnership that provides for a large network of reliable shelters. In peacetime, these shelters will have different purposes."

More details: Shmyhal said that Ukraine planned to produce at least 30,000 long-range drones and about 3,000 cruise missiles and drone missiles in 2025.

"Today, I will announce the main priorities of the government and the directions in which we will move forward in 2025. First of all, it is the defence and security of our country.

We have a record budget to provide for our army and strengthen the defence industry. A total of UAH 2.23 trillion (about US$53 billion) has been allocated for defence and security," Shmyhal said.

Shmyhal stressed that spending on weapons and military equipment will amount to at least UAH 739 billion (US$17.5 billion), and domestic defence companies plan to increase their existing production capacities to USD 30 billion (US$709.5 million).

Background: As of 1 January 2025, the State Treasury has fulfilled all submitted payments for 2024. However, more than UAH 100 billion (US$2.4 billion) remained in the treasury account and UAH 163 billion (US$3.9 billion) in foreign currency accounts.

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