EU to provide with EUR 1 bln in grants to Ukraine for defense industry under Danish Model – EU Ambassador

European Union Ambassador to Ukraine Katarína Mathernová detailed how EUR 2.1 billion generated from frozen Russian central bank assets will be allocated to Ukraine in the near future.

This week, the European Commission will receive EUR 2.1 billion in windfall revenues from immobilized Russian central bank assets held in central securities depositories. The majority of these funds will be used to procure weapons, ammunition, and air defense systems for Ukraine in the form of grants, the ambassador said in an exclusive interview with Interfax-Ukraine.

She clarified that part of the funds will be directed to EU member states for the purchase of ammunition and air defense systems. Of the total EUR 2.1 billion, EUR 1 billion will go directly to Ukraine's defense industry under the so-called "Danish model." Mathernová recalled that the EU had already invested EUR 400 million into Ukraine's defense sector in August of last year.

This time, the EU will provide EUR 1 billion in grants for the Ukrainian defense industry, contract preparations are currently underway, she added.

Mathernová highlighted the significance of the 10th meeting of the EU-Ukraine Association Council, which focused primarily on practical matters related to Ukraine's EU integration.

This is a major event that typically takes place once a year, very productive discussions were held, the ambassador said. Several announcements were made regarding support for Ukraine, and one such announcement concerned the additional EUR 1 billion allocation under the Extraordinary Revenue Acceleration for Ukraine (ERA) initiative, the ambassador added.

Additionally, five new agreements between Ukraine and the EU were signed in Brussels yesterday. These included three financial contracts worth EUR 300 million between the European Investment Bank and Ukraine. The financing will help local entities swiftly restore critical infrastructure such as water supply systems and energy-efficient facilities, alleviating pressure on public administration while ensuring effective project implementation. These projects, supported through the EU's Ukraine Fund, underscore the bloc's unwavering commitment to Ukraine's recovery and long-term resilience, the ambassador said.

The European Commission also signed agreements on Ukraine's participation in the EU Space Programme's Copernicus component, as well as subcomponents covering Space Weather Events and Near-Earth Objects.

As previously reported by EU High Representative for Foreign Affairs Kaja Kallas, the European Union is expected to transfer a second tranche of EUR 2.1 billion in late April from revenues generated by immobilized Russian assets.