Experts say Danish direct‑financing model helped scale Ukrainian defense production and could guide allies' support

At a briefing hosted by the U.S. Helsinki Commission, three experts said European direct‑financing mechanisms that channel allied funds into Ukrainian manufacturers have rapidly expanded Kyiv’s ability to produce weapons and related systems and could form the basis of long‑term deterrence and industrial integration.

Major General Carson Janssen, Denmark’s defense attache to the United States, described the so‑called Danish model as a ‘‘government‑to‑government‑to‑business’’ framework that allows the Ukrainian Defense Procurement Agency to buy directly from domestic manufacturers while partner governments validate and pay contracts. ‘‘The model has proved to be a defense industrial success,’’ Janssen said, adding that Denmark’s pilot delivered 18 artillery pieces within months and that the approach pairs expedited deliveries with physical inspections and independent audits.

Dr. Sofia Besch, a senior fellow at the Carnegie Endowment for International Peace, said Europe is moving beyond short‑term emergency transfers to ‘‘structured rearmament’’ that embeds Ukraine in European supply chains. She highlighted variations of the Danish model — including Dutch and German variants — and pointed to the EU’s new SAFE defense loan facility as a possible accelerator of large‑scale investment that explicitly allows Ukrainian participation.

Katerina Bondar, a fellow at the Wadhwani AI Center, provided quantitative context: she said Ukrainian annual defense production capacity ‘‘skyrocketed from about 1,000,000,000 in 2022 to over 35,000,000,000 by mid‑2025,’’ and that partner financing through Danish‑style mechanisms rose from roughly $400,000,000 in 2024 to about $6,000,000,000 in 2025. Bondar described practical mechanics such as dedicated accounts on the United24 platform, physical verification of serial numbers and delivery logs, and audits by Deloitte and internal bodies.

Panelists emphasized accountability safeguards. Janssen said partner governments screen suppliers, compare prices with market benchmarks, conduct on‑site inspections and delivery verification, and use external audits ‘‘on top of that’’ to reduce corruption risk. Bondar and Besch said the layered oversight — internal Ukrainian review, partner scrutiny and independent audit — helps ensure battlefield‑prioritized, performance‑based procurement.

Speakers also outlined constraints and adaptations needed for wider adoption. Besch pointed to regulatory burdens — including EU sustainability and procurement requirements and national security clearances — that can hinder Ukrainian firms. ‘‘There is a real regulatory burden challenge,’’ she said, and urged administrative capacity increases and targeted reforms rather than wholesale deregulation.

Bondar urged partners to accept some additional procurement risk to accelerate adoption of battlefield‑proven systems. ‘‘Lower the level of risk aversion, to accept risks related to adopting and using systems that are not tested according to all usual acquisition procedures,’’ she said, recommending shorter testing cycles and streamlined stages that retain only the most necessary checks.

During audience questions, participants asked what the United States should learn from these European experiments and what would happen if U.S. support diminished. Bondar recommended deeper U.S. financing and co‑development with Ukrainian firms to capture battlefield learning; Besch urged targeted integration where the United States supplies capabilities Europeans cannot produce. On the contingency of a U.S. withdrawal, panelists warned of serious gaps: Bondar said certain high‑end systems such as layered air‑defense capabilities and foreign intelligence support are difficult to replace, while also noting that many small drones are produced in Ukraine — ‘‘96% produced locally, only 4% delivered from bridal,’’ she said, but added those locally built systems often contain foreign components such as Chinese cameras.

Panelists concluded that direct financing and joint production can provide both the rapid operational support Ukraine needs now and the industrial foundation for longer‑term European security and deterrence. The session closed with a reminder that scaling these approaches will require coordinated multilateral funding, streamlined procurement procedures and investments to secure critical supply chains.

The briefing was organized by the U.S. Helsinki Commission and featured testimony from Major General Carson Janssen, Dr. Sofia Besch and Katerina Bondar. The Commission opened the floor to audience questions before adjourning.