The developments in Ukraine are crucial for Denmark’s essential security inter-ests, therefore it is deemed necessary to use industrial cooperation to support the integration of the Danish and Ukrainian defense industries with the aim of being able to supply equipment and services to the Ukrainian armed forces. In-creased collaboration between Danish and Ukrainian defense industry compa-nies will mutually strengthen the parties, benefiting both countries' security.
As a consequence of the situation in Ukraine, the DBA can therefore extraor-dinarily approve development activities in Ukraine. This can include a Danish company establishing production/MRO in Ukraine or entering a joint venture with Ukrainian companies and/or foreign obligors.
Foreign suppliers can thus, via development projects, support Danish compa-nies' establishment in Ukraine through co-financing/funding, advisory ser-vices, ‘on the ground’ knowledge, local networks, know-how, etc. This might reduce the overall risk profile for Danish companies wishing to establish themselves in Ukraine.
To be able to approve a Danish company's activities in Ukraine under industri-al co-operation, the relevant guidelines will apply. Additionally, the following prerequisites will be applicable:
- The project must involve a Danish company wishing to establish de-velopment/production in Ukraine as a natural extension of the com-pany's Danish operations. Thus, the project must not relocate Danish defence industrial capacity to Ukraine but must constitute an expan-sion of the overall business.
- If the project involves a joint venture between a Danish and an Ukrainian company, the Danish company is generally required to have controlling influence in the joint venture structure.
- The project must support the Ukrainian defense authorities' demand for defense material in order to ensure relevant Danish support. In this regard, DALO’s Ukraine office will be involved.