Denmark will provide a loan guarantee of 750 million Danish kroner (around €100 million) for the Danish subsidiary of the Ukrainian arms manufacturer Fire Point. This was reported by Denmark’s Ministry of Industry, Business and Financial Affairs.
The ministry recalled that last year Denmark invited the Ukrainian company Fire Point to locate production in Southern Jutland.
“Now another important step has been taken towards launching production. Denmark is providing a loan guarantee of 750 million Danish kroner for Fire Point’s Danish subsidiary. The loan is guaranteed by the Danish state because the war in Ukraine prevents Fire Point from obtaining a loan in Denmark on normal market terms,” the ministry said.
Denmark’s Minister for Industry, Business and Financial Affairs, Morten Bødskov, said that supporting Ukraine’s defence industry would help strengthen the defence capabilities of Ukraine and Europe, as well as develop Denmark’s defence sector.
He said that locating a Ukrainian defence enterprise in Denmark would make it possible to expand production capacity, share expertise and create new partnerships.
Denmark’s Defence Minister Troels Lund Poulsen noted that placing production outside Ukraine would help protect it from Russian attacks, and that cooperation with Fire Point would give the Danish armed forces and companies access to technologies and experience gained during the war.
EIFO Chief Executive Officer Peder Lundquist said the fund is currently involved in almost 40 projects aimed at supporting Ukraine and developing cooperation between Ukrainian and Danish organisations. He described the financing of Fire Point as one example of such collaboration.
As a reminder, the start of construction of a plant producing solid rocket propellant for the Flamingo cruise missiles, which the Ukrainian company Fire Point is building in Denmark, has been postponed until the end of 2027. The work was initially planned for the end of this year, but the cost of the project has risen from €50 million to more than €150 million.