EXPLAINED: How Denmark could be impacted by Russia’s invasion of Ukraine
Tensions between Russia and western nations have increased following Russia's invasion of Ukraine. The Local takes a look at Denmark’s stance on the war and how the country could be impacted.
Published: 24 February 2022 13:01 CET
A boy wearing the blue and yellow scarf of Danish football team Brøndby takes part in demonstration in Copenhagen against Russian aggression in Ukraine on February 23rd, prior to the Russian invasion of the country on February 24th 2022. Photo: Mads Claus Rasmussen/Ritzau Scanpix
Url copied to clipboard!
It is quiet naive to think that exposure is limited to 6.8 billion DKK. We have global economy and basically everyting you buy from Germany is either made from Russian fossil fuels, rare earth metals or Ukranian agreecultural sector imports to Germany and rest of EU.
Hence, your exposure to market price fluctuations is above 100 billion DKK, which is about to raise by at least 20-25% (just like it does now in Germany or US). Certainly, it is not wisest decision to increase on defence spending in such regard, considering the fact that Denmark produces no weapons of its own, so its 2% of GDP invested outside the country with close to 0 reinvestment to local infrastructure.