Denmark backs major loan to Ukrainian defence manufacturer Fire Point

Denmark will provide a state guarantee for a loan of 750 million Danish kroner, or approximately $113 million, to the Danish subsidiary of Ukrainian defence company Fire Point, the government announced on Wednesday, according to Reuters-based reporting by Ukrainska Pravda and the Kyiv Independent.

The financing will be arranged through Denmark's Export and Investment Fund, known as EIFO. The Danish government said the guarantee was needed because Russia's war against Ukraine made ordinary commercial lending more difficult for the company. The measure supports a Ukrainian manufacturer operating on Danish territory rather than a direct cash grant to Ukraine's military.

Business and Industry Minister Martin Lidegaard said the arrangement would strengthen links between Danish and Ukrainian manufacturers and help Ukraine secure access to defence production. Defence Minister Jeppe Bruus said placing parts of Ukraine's defence industry outside the country could shield supply chains from Russian attacks.

The Danish subsidiary is developing a plant for solid rocket fuel in southern Jutland near Skrydstrup air base, according to Ukrainska Pravda. Denmark previously announced the industrial plans in September 2025. The facility is expected to start operating by the end of 2027, but the reports did not establish that production had already begun.

Fire Point makes Ukrainian missiles and drones. The company has also pursued partnerships with European defence suppliers for radar, guidance and related technologies. Ukrainska Pravda reported that it had reached agreements with more than a dozen companies connected with its proposed Freyja missile-defence project.

EIFO said it was working on almost 40 projects involving Ukraine and Danish-Ukrainian business cooperation, according to the Kyiv Independent. The new loan guarantee is one specific financing commitment within that wider effort; it should not be added to other programme values without an official combined total.

The government statements did not specify a date for the first loan disbursement or how much would be spent on individual products. The decision is part of Denmark's policy of helping Ukraine sustain defence manufacturing while the country faces Russian strikes on industrial infrastructure.