Ukraine Ups Its Arms Production, Asking Allies to Pay for It
© Brendan Hoffman for The New York Times
© Brendan Hoffman for The New York Times
© Omar Havana/Associated Press
A Danish company’s Russian subsidiary is facilitating grain exports through the occupied Berdiansk port, helping ship at least 172,000 tons of grain between March 2024 and May 2025, according to an investigation by Slidstvo.Info and KibOrg.
The investigation reveals that “Baltic Control Novorossiysk,” registered in Russia, provides cargo hold inspection and draft survey services at Berdiansk port, which Russia has controlled since March 2022. The company’s parent organization, Baltic Control, operates from Denmark and positions itself as a leading global inspection and certification firm established in 1980 with over 50 offices worldwide.
IT specialists from KibOrg obtained documentation related to the occupied Berdiansk port’s operations. Analysis by Slidstvo.Info journalists found Baltic Control mentioned dozens of times in correspondence between Russian companies regarding grain shipment preparations.
After Russia’s full-scale invasion began, information about Baltic Control’s Russian operations disappeared from the Danish company’s website. However, when journalists contacted the central office in Denmark seeking contact details for the Russian branch, they received the phone number of “Baltic Control Novorossiysk” director Alexander Shalimov.
Speaking to a journalist who presented herself as a manager from a Polish company, Shalimov confirmed his firm’s inspection services in Berdiansk port.
“I’ll tell you this – we are the only ones located in Berdiansk. All the rest are visitors. This is a very significant nuance. So you will see quality throughout the entire loading process, operatively,” Shalimov said during the call.
When a Slidstvo.Info journalist called Shalimov and identified himself as Ukrainian media, Shalimov denied working in Berdiansk and refused to answer follow-up questions.
Neither the Danish Baltic Control nor the Russian “Baltic Control Novorossiysk” responded to written inquiries from journalists.
International law attorney Kateryna Rashevska told Slidstvo.Info that the Danish Baltic Control’s involvement in grain exports from occupied Zaporizhzhia region territories could be considered complicity in Russian crimes.
The investigation documents Russian companies’ systematic use of the occupied port for grain shipments, with Baltic Control’s subsidiary providing crucial inspection services that enable these operations to proceed.
© David Guttenfelder/The New York Times
© Ida Marie Odgaard/Ritzau Scanpix Denmark, via Reuters
Denmark’s Minister of Economy, Stefanie Lose, announced that aid to Ukraine will continue beyond 2026. The European Union is already discussing financial support for Ukraine beyond that year, as the situation with Russian aggression remains extremely challenging, UkrInform reports.
Lose says that the funding will be available until 2026, but she understands resources will be needed for the next period.
Commenting on the informal dinner of EU ministers of economy and finance held on Monday ahead of the EU Council meeting, where financial aid for Ukraine beyond 2026 was discussed, the official stated there was a “very good discussion” during which the parties explored “options under which Ukraine can receive everything it needs.”
The official highlights that strong solidarity with Ukraine exists within the European family and that aid will remain “at the very top of the agenda” throughout Denmark’s presidency.
Meanwhile, the European Commission is urgently discussing with the EU and G7 countries how to prevent a major financial shortfall in Ukraine in 2025. The projected gap in external funding could reach $19 billion, amid declining US support and no immediate prospects for a peace deal with Russia.
In 2024, Denmark introduced a unique military support mechanism for Ukraine — the Danish model. It involves direct funding and procurement of weapons from Ukrainian domestic defense enterprises. This approach strengthens Ukraine’s defense industry and provides the Armed Forces with modern NATO-standard equipment.
© David Vintiner for The New York Times
Kyiv and Copenhagen signed a landmark agreement on July 4 that allows Ukrainian defense companies to open production facilities in Denmark, Strategic Industries Minister Herman Smetanin announced.
"This is a unique case of international cooperation for the Ukrainian defense industry," Smetanin wrote on Facebook, following the signing ceremony in Copenhagen alongside Danish Industry Minister Morten Bodskov.
The deal marks the first time Ukrainian defense technologies will be exported abroad specifically for supply to Ukraine's own Armed Forces, he said.
A year ago, Denmark became the first country to fund weapons production by Ukrainian manufacturers. Now, it has become the first to host Ukrainian arms production lines on its territory, Smetanin added.
"Today, it has become the first country to which Ukraine exports its own defense technologies for production, scaling, and supply to the Ukrainian army," he said.
The agreement is part of Ukraine's broader effort to internationalize its defense production. President Volodymyr Zelensky announced on June 21 that Kyiv would soon begin exporting defense technologies and opening weapons production lines in partner countries.
To scale up domestic and international production, Zelensky has called on foreign partners to finance new projects and match Ukraine's rapidly growing manufacturing capacity.
Denmark has been a key backer of Ukraine since the start of Russia's full-scale invasion in 2022. In February 2024, Copenhagen signed a 10-year bilateral security agreement with Kyiv, pledging long-term defense cooperation until Ukraine secures NATO membership.
Ukraine will establish defense plants in Denmark. Ukraine’s Minister for Strategic Industries, Herman Smetanin, and Denmark’s Minister for Industry, Morten Bødskov, have signed an agreement on cooperation.
Herman Smetanin recalls that a year ago, Denmark was the first to begin financing weapons production by Ukrainian companies.
Today, it has become the first country where Ukraine exports its own defense technologies for production, scaling, and delivery to the Ukrainian military.
“This is a unique case of international cooperation for the Ukrainian defense industry. I am extremely grateful to Denmark for such significant support of Ukraine’s defense sector,” the minister states.
He adds that Ukraine will make every effort to strengthen Denmark’s and its partners’ defense capabilities.
In 2024, Ukraine and Denmark introduced a new mechanism for funding arms procurement for the Armed Forces of Ukraine. This mechanism was named the “Danish model.”
It is a system of military assistance to Ukraine that involves direct financing and procurement of weapons from Ukrainian defense companies. This approach supports Ukraine’s defense industrial base, helping to equip Kyiv troops with NATO-standard technology.
The first project under the Danish model was the procurement of 155mm 2S22 Bohdana self-propelled howitzers with full-cycle financing, from production to crew training and technical support. In 2025, defense support under this model will scale up to over €1.3 billion, part of which comes from frozen Russian assets. The funds will go toward the production of artillery, attack drones, missiles, and anti-tank systems.
Ukraine signed a major deal with U.S. company Swift Beat to co-produce hundreds of thousands of drones this year, President Volodymyr Zelensky announced on July 3 during his visit to Denmark.
The long-term strategic partnership agreement was signed by Ukraine's Defense Minister Rustem Umerov and Eric Schmidt, the CEO of Swift Beat, in Denmark on the same day.
Under the deal, the company will produce various kinds of unmanned aerial vehicles for Ukraine, including those designed to intercept Russian drones and missiles, reconnaissance, attack, and other drones, Zelensky said in a statement published on the website of the President's Office.
"The key priority is interceptor drones that have already proven effective in Ukraine," Zelensky said. "We've tested models from several companies, and now we're signing serious contracts."
Swift Beat will increase its production capacity, aiming to produce hundreds of thousands of drones for Ukraine this year, with plans to scale up production in 2026, according to Zelensky.
"Modern drones will be supplied to Ukraine as a priority, on special terms and at cost," Zelensky said.
The announcement comes just a day after the U.S. Defense Department (DOD) has halted shipments of some air defense missiles and other weapons previously promised to Kyiv. Ukraine has been trying to negotiate buying U.S. weapons for months after U.S. President Donald Trump, who has opposed military aid to Kyiv, took office in January.
Swift Beat has a significant presence in Ukraine, according to Zelensky's office. It specializes in autonomous AI-powered drones and cooperates with Ukrainian engineers and the military, conducting drone testing on Ukrainian territory, the statement reads.
Zelensky arrived in Denmark on July 3 to mark the country's assumption of the rotating presidency of the Council of the European Union.
Zelensky also said that during his visit, he plans to raise the issue of political blockages hindering Ukraine's path to joining the European Union.
"We're ready to open three accession clusters and want to start with one now, in the very near future. But political blockages remain, purely political," he said.
While EU member states agreed to take into account the European Commission's assessment that Ukraine is ready to open the first, Fundamentals cluster, the process remains stalled due to Hungary's refusal to grant unanimous support.
Ukraine applied for EU membership in 2022 and was granted candidate status shortly thereafter, but full negotiations require the approval of all 27 EU member states.
Denmark has been a key backer of Ukraine since the start of Russia's full-scale invasion in 2022. In February 2024, Copenhagen signed a 10-year bilateral security agreement with Kyiv, pledging long-term defense cooperation until Ukraine secures NATO membership.
Zelensky said he expects Denmark to expand its financial support for Ukraine's drone and missile production initiatives.
"What we've just signed requires significant funding. I'm counting on our relationship with Denmark," the president said.
The Ukrainian president will also participate in official events commemorating Denmark's presidency of the Council. According to Danish broadcaster DR, the events will be attended by Denmark's royal family, government officials, and EU leaders.
Defense Minister Rustem Umerov signed a Letter of Intent on June 24 with his Danish counterpart Troels Lund Poulsen to launch Ukrainian defense production in Denmark, Umerov announced on Facebook.
The document envisages facilitating the deployment of Ukrainian defense companies in Denmark and integrating of the defense industries of both countries through the "Build with Ukraine" initiative.
Denmark has already allocated $47 million for the project, and Ukraine's partners will provide further funding for production.
"I thank the Danish government for its trust, steadfast support of Ukraine, and commitment to developing a deep partnership between our countries," Umerov said. "This partnership enhances the security of Ukraine, Denmark, and all of Europe — today and into the future."
The agreement between Ukraine and Denmark also provides coordination between the Danish Defense Ministry, the Business and Industry Ministry, and the Foreign Ministry to integrate Ukrainian enterprises into the European defense system.
"By providing Ukrainian defense companies the opportunity to start production in Denmark, we are creating a basis for close cooperation between defense companies in both countries. This will also provide the Danish Armed Forces with access to the latest technologies and the experience of Ukraine," Poulsen said.
Denmark has pioneered efforts to support Ukraine by investing in its defense industry, creating the so-called "Danish model" of purchasing arms for Kyiv from Ukrainian producers. Copenhagen has provided around $9.8 billion in military aid under its Ukraine Fund for the years 2023-2028.