Portugal has announced a significant financial commitment to assist Ukraine’s defense capabilities, with plans to allocate 25 million euros (approximately $29 million) annually for the next five years. This announcement came following a meeting in Kyiv between Ukrainian Defense Minister Denys Shmyhal and his Portuguese counterpart, Nuno Melo.
The funding is set to be part of the SAFE (Security Action for Europe) program, designed to offer low-interest loans to European Union member states for defense projects. The SAFE program provides loans at a minimal interest rate of 1 percent, with repayment periods extending up to 40 years. This financial support aims to enhance Ukraine’s defense industry and its capacity to address pressing military needs.
During the meeting, Shmyhal highlighted the importance of ongoing cooperation in the defense sector, emphasizing the need for Ukraine to secure resources for protecting its citizens and vital infrastructure. He expressed appreciation to Portugal, particularly noting the country’s commitment of an additional 50 million euros (about $59 million) through the PURL (Prioritized Ukraine Requirements List) mechanism. This initiative allows allies to fund the procurement of essential U.S.-made military equipment directly from American stockpiles for Ukraine.
In 2024, the Ukrainian defense industry had already benefited from over $1.5 billion in support from various partner nations under the Manufacturing Freedom project, which aims to bolster domestic defense manufacturing. The initiative saw the participation of nine countries, including Denmark, Canada, the Netherlands, Lithuania, the UK, Sweden, Norway, Iceland, and the United States, alongside support from the EU. This funding came from either national budgets or accrued interest from frozen Russian assets.
Moreover, as part of these cooperative efforts, over $500 million has been channeled into arms contracting through a model pioneered by Denmark, which allows it and its allies to directly fund Ukrainian defense companies to manufacture weapons and equipment locally. This strategy not only reinforces Ukraine’s defense capabilities but also stimulates the national industry.
The developments mark a strategic alignment between Portugal and Ukraine amid ongoing geopolitical tensions, underscoring a collective commitment to enhancing security and defense cooperation in Europe.
