Iceland joins Denmark’s model to fund Ukraine’s arms production with €2 million contribution

The Ukrainian Ministry of Foreign Affairs reports that the government of Iceland has recently allocated over €2 million to support the production of Ukrainian weaponry.

This funding aligns with the “Danish model,” a mechanism pioneered by Denmark to finance Ukrainian arms production. After exhausting its stockpile of military aid to Ukraine, Denmark allocated $680 million—primarily sourced from frozen Russian assets—for this purpose. Copenhagen plans to transfer the funds by year-end and is targeting at least $1.4 billion in 2025 for further support. Iceland’s contribution marks its participation in this innovative approach to bolstering Ukraine’s defense capabilities.

On 7 January, Iceland’s Foreign Minister, Þórdís Kolbrún Reykfjörð Gylfadóttir, visited Kyiv. During the meeting with her Ukrainian counterpart, Andrii Sybiha, she expressed gratitude for Iceland’s contribution to Ukrainian arms production under the Danish model.

“We are thankful for Iceland’s recent contribution of over €2 million to the production of Ukrainian weaponry. We look forward to Iceland increasing its investments in Ukraine’s defense industry,” Sybiha stated.

He also acknowledged Iceland’s support in areas such as demining, logistical aid, training for Ukrainian soldiers, and the initiative to expedite arms procurement for Ukraine’s Defense Forces.

Sybiha particularly highlighted Iceland’s efforts in providing prosthetics for wounded Ukrainian soldiers, emphasizing plans to scale up relevant projects this year to aid the recovery of more defenders.

Earlier, Reykjavík contributed $725,000 to the Energy Support Fund for Ukraine amid Russian aerial assaults on the country’s energy system.

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