EU funds Ukrainian defense industry with €400 million from frozen Russian asset proceeds
Denmark facilitated joint EU-Danish funding for Bohdana artillery production, as per EU Ambassador Mathernová.
The European Union has allocated €400 million from the proceeds of frozen Russian assets to support Ukraine’s defense industry, including the production of Bohdana self-propelled howitzers, according to EU Ambassador to Ukraine Katarína Mathernová.
In an interview with Interfax-Ukraine published on 19 September, Mathernová revealed that this funding is part of a larger initiative to support Ukrainian defense production.
“A major innovation is that €400 million was directed straight to the Ukrainian defense industry. This is to support the Ukrainian defense industry, which produces faster and cheaper. And in this way it’s more convenient for logistics. And it supports the Ukrainian economy,” Mathernová stated.
Denmark played a leading role in facilitating this process, channeling funds to the Ukrainian defense industry. Mathernová explained,
“Denmark was the first. So we turned to them to help us direct the funds received from frozen assets. We provided €400 million for the purchase of Ukrainian-made weapons. And that’s not all.”
In July, Denmark signed an agreement to fund the local production of 18 Ukrainian Bohdana self-propelled artillery units for the Ukrainian Army, becoming the first country to support this type of purchase. The Ukrainian military received the howitzers in September.
Ambassador Mathernová disclosed that out of 18 Bohdanas purchased, two-thirds were financed by the EU using funds obtained from profits on frozen Russian assets.
The 2S22 Bohdana, a Ukrainian 155 mm NATO-caliber self-propelled howitzer, completed trials in January 2022 and first engaged in June during the battle for Zmiinyi (Snake) Island, destroying a Russian “Pantsir” missile system and a radar station. It has a firing range of up to 50 km, depending on the type of round used.
This funding is part of a broader EU support package. Mathernová said,
“Even before the discussion about using frozen Russian assets to obtain a €50 billion loan began, the EU had already approved the use of excess profits from frozen Russian assets. And the first €1.4 billion has already been paid out a month ago. In August this year, €1.4 billion was paid out. €1 billion went to several member countries that will deliver weapons to Ukraine this fall.”
While unable to specify the exact increase in future allocations for the Ukrainian defense industry, as decisions are not yet finalized, Mathernová assured that the amount would increase.
Katarína Mathernová assumed her position as EU Ambassador to Ukraine in September 2023.
Related:
- Ukraine doubles weapons production in 2024, focuses on drones and shells, PM says
- EU allocates part of the proceeds from frozen Russian assets for Ukraine’s humanitarian needs
- Ukraine’s Bohdana artillery production gets financial boost from Denmark
- Frozen Russian asset proceeds to supply Ukraine with ammo via Czech initiative
- Ukraine increases domestic Bohdana howitzer production to 10 units per month
- “Now we make Russia pay”: EU to transfer first $ 1.6 bn in frozen Russian assets to Ukraine
- Denmark to deliver batch of F-16 aircraft to Ukraine by end of 2024 – Defense Minister
- Denmark supports lifting restriction on Ukraine’s use of Western long-range weapons inside Russia
- Danish Prime Minister: Ukraine must win, because if Russia wins, we all lose
- Danish Foreign Minister: Ukrainian military can use Danish weapons in Russia
