Danish Act No.1097 key takeaways: strengthening Danish-Ukrainian collaboration

The Danish Act No. 1097 establishes a special legal regime aimed at expediting the implementation of strategic national defence and civil security projects.

 

Key provisions

• Accelerated project approval: The Danish government has the power to fast-track approvals for critical defence and civil security infrastructure, allowing for simplified planning, construction, and environmental permitting processes.
• Expropriation of land: Land may be acquired by the state for defence-related projects, with a commitment to fair and transparent compensation for affected owners.
• Temporary application: This special legal regime will apply until 31 December 2028.
• Compliance with international standards: All projects must continue to comply with EU rules on environmental protection, sanctions, and export controls, even when fast-tracked.
• Scope of application: The Act covers the production of ammunition, establishment of defence manufacturing facilities, and development of infrastructure for emergency and civil contingency purposes¹.

 

What impact will Act No. 1097 have?

The Act establishes a legal framework enabling Ukrainian manufacturers of defence products and dual-use goods to commence production activities within allied countries under the jurisdiction of Denmark and the European Union. This regime ensures legal certainty, transparent regulatory oversight, and the opportunity to conclude partnership agreements with Danish and other European business entities.

• For Ukraine’s defence industry, this model provides critical diversification of production capacities during wartime and reconstruction, while also facilitating integration into European supply chains.
• For Denmark, the framework offers access to advanced technologies, skilled labour resources, and expanded export opportunities, often implemented through cooperation with Ukrainian owners and technical teams. These teams may, in turn, directly invest in the facilities they manage.

 

Cooperation in security and long-term support: key dates

• 23 February 2024: Ukraine and Denmark agreement signed to boost Ukraine’s defence capabilities and strategic resilience². Key elements include joint defence projects, integrating Ukrainian companies into European supply chains, technology exchange in armaments, unmanned systems, and critical infrastructure, and modernising energy and communications – all in line with EU export control and sanctions rules.
• 4 July 2025: a major agreement was reached to help Ukrainian defence companies set up branches in Denmark. Denmark will support production and export permits, making it easier to ship defence products to Ukraine³. Ukraine will provide the necessary resources and technology to launch production in Denmark. This is a significant step towards closer industrial cooperation and stronger defence for both countries.
• 6 October 2025: a Memorandum of Understanding is signed to enable Ukrainian defence companies to establish production in Denmark, create joint manufacturing, exchange technology, and access EU funding for joint projects⁴. This aims to strengthen defence, promote industrial cooperation, and integrate Ukrainian firms into the European defence sector.
• October 2025: Denmark’s state agency EIFO issued its first investment guarantee for a Danish company in Ukraine’s defence sector⁵. The EUR1.6 million investment will expand production of electronic counter-drone equipment, vital for Ukraine. EIFO’s guarantee covers 70% of the investment for seven years, with a matching loan. This is the first use of Denmark’s EUR134 million state-backed scheme to attract private investment into Ukraine’s defence industry. The programme reduces risks for Danish companies, encourages investment in weapons, ammunition, drones, and software, and strengthens Ukraine’s defence while deepening cooperation.

Streamlined procedures for critical projects, joint production, advanced technology exchange, and state-backed investment guarantees usher in a new era of cooperation. These measures reinforce Ukraine’s defence capabilities but also integrate the country into European supply chains, creating a robust alliance for security and innovation.

 

Recent changes in defence procurement in Ukraine

Ukraine has recently undertaken a reform of its defence procurement system to enhance transparency, efficiency, and oversight. In December 2025, the Ukrainian government announced the merger of its two main procurement agencies, the Defence Procurement Agency (DPA) and the State Logistics Operator, into a single Unified Acquisition Agency⁶.

This new body will centralise the procurement of weapons, ammunition, clothing, and food for the armed forces, and will operate under the supervision of a newly established board. The reform aims to streamline decision-making, reduce duplication, and lay the foundation for a more comprehensive and accountable procurement strategy.

The reform is part of a broader effort to align Ukraine’s defence procurement with NATO standards and to support the country’s ongoing defence needs during wartime.

 

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¹New Danish Legal Framework for Defence‑Related Construction Projects and Production Activities | DLA Piper.
²Agreement of 23 February 2024 on Security Cooperation and Long-Term Support between Ukraine and Denmark.
³Denmark and Ukraine Strengthen Cooperation on Ukrainian Defense Industry on Danish Soil.
⁴New Agreement Opens Up for Even More Ukrainian Companies on Danish Soil.
⁵First Million-Kroner Guarantee for Danish Investment in Ukrainian Defence Company.
⁶Cabinet of Ministers of Ukraine, Resolution No. 1606 of 5 December 2025.