Denmark's government will provide a state guarantee for a loan of 750 million Danish kroner (about $112.6 million) for the local subsidiary of the Ukrainian missile and drone manufacturer Fire Point. The financing will help implement a defense production project on the territory of Denmark.
The Ministry of Business of Denmark reported this on October 21.
The loan financing will be provided by the Danish Export-Investment Fund (EIFO), and the state will act as guarantor. The ministry explained that due to the war in Ukraine, it is difficult for Fire Point to attract borrowed funds on standard commercial terms in Denmark.
It is specifically a loan with a state guarantee, not non-repayable financial assistance to the company. The Danish authorities' announcement does not specify the schedule for disbursing the funds.
The financing is intended for the development of the Fire Point production project in the south of Denmark. The Ukrainian company is establishing a facility there for the production of solid rocket fuel, which will be used in the defense industry.
The project involves locating part of the Ukrainian defense company's production capacity outside Ukraine. According to Danish Defense Minister Jeppe Bruus, this will better protect production from Russian attacks and ensure more stable supplies of critically important components.
Denmark's Minister for Business and Competitiveness Martin Lidegaard noted that the presence of a Ukrainian defense enterprise creates opportunities for technological cooperation, development of production partnerships, and strengthening of the Danish defense industry.
Earlier, Kurs.com.ua reported that the launch of the Fire Point plant in Denmark has been postponed from the end of 2026 to the end of 2027. The reason was difficulties with the preparation of production facilities. At the same time, the preliminary cost estimate of the project increased from approximately 50 million euros to more than 150 million euros.
The new decision by the Danish government ensures financial support for the implementation of this project, but does not mean that the enterprise has already started production.
According to EIFO, the fund is currently involved in nearly 40 projects related to supporting Ukraine and cooperation between Ukrainian and Danish businesses. They cover the defense sector, industry, agriculture, energy, and infrastructure recovery.
According to materials from: Ministry of Business of Denmark, EIFO
