Denmark puts a $112.6 million state guarantee behind the maker of Ukraine’s Flamingo missiles

Denmark will guarantee a loan to the Danish subsidiary of Fire Point, the Ukrainian maker of Flamingo cruise missiles, the Danish Business Ministry announced on 21 October. The financing will run through EIFO, Denmark’s state export and investment fund.

Ukraine uses its Flamingo missiles to strike defense plants deep inside Russia as Moscow continues its full-scale invasion. Fire Point broke ground in December 2025 on a plant in Vojens, southern Denmark, to make solid fuel for the missiles. The project has since grown far more expensive. In August, CEO Iryna Terekh said its estimated cost had risen from €50 million to above €150 million, calling the figure “very rough.” The war, meanwhile, stands in the way of Fire Point borrowing on ordinary terms in Denmark, the ministry said. That is why the Danish state is guaranteeing the loan.

What Denmark is putting up

The guarantee covers 750 million Danish kroner, or about $112.6 million, Reuters reported. Terekh said in August that the plant’s launch had slipped to late 2027. The ministry called the deal another big step toward starting production. However, Ukrainian outlet Defender Media noted that the statement does not say directly that the loan will fund the plant.

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EIFO chief Peder Lundquist said the fund is involved in nearly 40 projects linked to Ukraine. Business Minister Martin Lidegaard said hosting a Ukrainian defense company brings Denmark knowledge, production, and partnerships. Europe’s security and freedom, he added, start in Ukraine.

Better shielded from Russian strikes

Defense Minister Jeppe Bruus said Denmark was the first country to decide to let a Ukrainian defense company set up on its soil. Production outside Ukraine, he argued, is better protected from Russian attacks. He added that Fire Point’s presence opens cooperation that could give Denmark access to technologies developed in wartime.

Denmark first said in September 2025 that Fire Point would make long-range missile fuel on Danish soil. Since then, the company has signed deals with more than a dozen European firms for FREYJA, an anti-ballistic project. It could reduce Europe’s long-term reliance on scarce US-made Patriot interceptors. Fire Point aims for a first ballistic missile intercept with it by mid-2027.