Denmark guarantees 750 million kroner loan for Ukrainian arms firm

Denmark will guarantee a 750 million-kroner loan for the Danish subsidiary of Ukrainian defence company Fire Point, which plans to produce rocket fuel in Denmark, DR reports, citing the Ministry of Business.

The ministry said the guarantee was needed because the war in Ukraine makes it difficult for Fire Point to obtain a loan on ordinary terms in Denmark.

Production is planned for Vojens in southern Jutland, near Skrydstrup Air Base, and is now expected to start in late 2027, a year later than originally planned. Fire Point chief executive Iryna Terekh announced the delay in August, saying construction had taken longer than expected.

Business and Competitiveness Minister Martin Lidegaard said the project would bring knowledge, production and partnerships to Denmark, strengthen the Danish defence industry and support Ukraine and Europe.

Fire Point was invited to produce rocket fuel in Denmark in September 2025. A law passed that month allows the defence minister to set aside rules for military projects deemed to have significant national importance. The company’s construction project can bypass more than 20 rules and laws, including environmental, planning and nature protection legislation. Fire Point will eventually have to meet the ordinary requirements for a company of its kind.

Defence Minister Jeppe Bruus said support for Ukraine’s defence industry would increase the country’s military capacity. He added that producing defence equipment outside Ukraine could better protect it from Russian attacks.