The “Danish Model” Goes Big: Denmark to Spend €830 Million on Ukrainian Weapons, Built in Ukraine

Europe is converting frozen Russian assets into 152mm rounds and anti-tank missiles faster than you can say “sanctions loophole.”

Ukraine’s Sea Baby Drone. While less publicized, Denmark has been instrumental in funding Ukraine’s unmanned naval drone programs, especially after Russia began targeting commercial shipping in the Black Sea. Courtesy AFU

In a move that blends smart geopolitics with logistical pragmatism, Denmark is now the European Union’s point man for funneling frozen Russian money into Ukrainian firepower. And they’re not buying missiles from Raytheon or drones from Airbus. They’re buying Ukrainian.

From Oligarch Assets to Artillery Shells

If you had told Roman Abramovich in 2021 that one day his frozen bank account would be buying Bohdana howitzers to obliterate Russian positions in Zaporizhzhia, he probably would have laughed you out of his London mansion.

Fast forward to 2025, and that’s exactly what’s happening: Europe is converting frozen Russian assets into 152mm rounds and anti-tank missiles faster than you can say “sanctions loophole.”

The money in question isn’t small change. We’re talking about billions in interest profits from assets seized in the early days of the full-scale invasion: Russian central bank reserves, oligarch yachts, luxury apartments, you name it.

But rather than letting that money sit in legal limbo or get funneled into endless EU “assessment phases,” Denmark is now using it to backfill Ukraine’s ammunition stockpiles and rearm local defense production lines.

The elegance of the mechanism is worth pausing on. The funds themselves are not from taxpayers.

They’re not loans.

They’re not a result of coalition fundraising fatigue.

These are proceeds from money Russia cannot legally touch, sitting in European banks, gathering interest. And now, instead of growing moss, they’re buying laser-guided drones and long-range artillery platforms.

It’s the first real example of what sanctions should feel like, weaponized wealth turned into literal weapons. And not symbolic aid either. These are tangible, frontline-ready systems manufactured by Ukraine’s defense sector, designed for immediate deployment and tactical relevance.

More importantly, this isn’t just a one-time transfer.

It’s a precedent. A proof of concept that dirty money can be cleaned, reallocated, and turned into a strategic asset, not through lofty declarations, but through manufacturing orders and logistics contracts.

Denmark isn’t just spending the money. It’s closing the loop on a moral economy of war, where stolen prosperity becomes the very thing that turns the tide against the aggressor.

And while some EU states continue wringing their hands over “escalation,” Denmark has figured out how to use frozen Kremlin money not only to send a message, but to deliver munitions.

One shell, one drone, one missile at a time.

Wait, what exactly is the Danish Model?

In technical terms, the Danish Model refers to a foreign military assistance framework in which donor funds, whether from national budgets, multilateral institutions, or, most recently, windfall profits from frozen Russian assets, are used not to purchase weapons from the donor’s own defense industry but to procure weapons and equipment directly from Ukrainian defense manufacturers.

Denmark serves as a procurement authority on behalf of the European Union and allied nations such as Norway, Iceland, and Canada, managing funds, vetting Ukrainian defense manufacturers, overseeing contracts, ensuring delivery and compliance, and auditing usage and effectiveness.

In doing so, Denmark effectively operates as a decentralized, NATO-aligned defense acquisition agency, functioning independently from Brussels or Washington, yet fully integrated into the broader effort to sustain Ukraine’s warfighting capacity.