[Joint House and Senate Hearing, 119 Congress]
[From the U.S. Government Publishing Office]






119th Congress                                Printed for the use of the

1st Session             Commission on Security and Cooperation in Europe
________________________________________________________________________






 
                 From Production to Procurement: How
                 Europe and Ukraine Are Transforming 
                          Defense Supply Chains


  





    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]





                       DECEMBER 10, 2025
                       
                       
                       
                         Briefing of the 
         Commission on Security and Cooperation in Europe
                        Washington: 2026   
                        
                        
                        
                        
                       
                       
                       











           Commission on Security and Cooperation in Europe
                  234 Ford House Office Building  
                        Washington, DC 20515  
                            202-225-1901  
                       [email protected]  
                       http://www.csce.gov  
                         @HelsinkiComm




          Legislative Branch Commissioners


         SENATE                                         HOUSE
ROGER F. WICKER, Mississippi Chairman        JOE WILSON, South Carolina       
SHELDON WHITEHOUSE, Rhode Island                 Co-Chairman       
  Ranking Member                             STEVE COHEN, Tennessee Ranking Member 
JOHN BOOZMAN, Arkansas                       ROBERT ADERHOLT, Alabama
KATIE BRITT, Alabama                         EMMANUEL CLEAVER, Missouri
JOHN FETTERMAN, Pennsylvania                 LLOYD DOGGETT, Texas
RUBEN GALLEGO, Arizona                       JAKE ELLZEY, Texas   
JEANNE SHAHEEN, New Hampshire                RICHARD HUDSON, North Carolina   
THOM TILLIS, North Carolina                  GREG MURPHY, North Carolina
MIKE ROUNDS, South Dakota                    MARC VEASEY, Texas

                       Executive Branch Commissioners


                       DEPARTMENT OF STATE, to be appointed 
                      DEPARTMENT OF DEFENSE, to be appointed 
                     DEPARTMENT OF COMMERCE, to be appointed 


ABOUT THE ORGANIZATION FOR SECURITY AND COOPERATION IN EUROPE


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ABOUT THE ORGANIZATION FOR SECURITY AND COOPERATION IN EUROPE


    The Commission on Security and Cooperation in Europe, also known as 
the Helsinki Commission, is an independent U.S. Government commission 
created in 1976 to monitor and encourage compliance by the 
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From Production to Procurement: How Europe and Ukraine Are Transforming 
Defense Supply Chains


                           December 10, 2025





                                                                   Page

                        COMMISSION STAFF PRESENT


Viktor Olah Sallai, Policy Fellow, Commission on Security and 
Cooperation in Europe ...........................................    1


                              PARTICIPANTS


Major General Karsten F. Jensen, Defense Attache, Royal Danish  
Embassy in the United States ....................................    2

Kateryna Bondar, Fellow, Wadhwani AI Center at the Center for  
Strategic and International Studies .............................    4

 Sophia Besch, Senior Fellow, Europe Program at the Carnegie 
Endowment for International Peace ...............................    6 


From Production to Procurement: How Europe and Ukraine Are Transforming 
Defense Supply Chains

                              ----------                              

                           December 10, 2025




           Commission on Security and Cooperation in Europe 
                         Washington, DC



    The briefing was held from 2 p.m. to 3:07 p.m., Room 2358-C, 
Rayburn House Office Building, Viktor Olah Sallai, Policy Fellow, 
Commission on Security and Cooperation in Europe, presiding.
    Mr. Sallai: Good afternoon, everyone. My name is Viktor Olah, and I 
am a policy fellow at the U.S. Helsinki Commission. I want to thank 
everyone for joining us for today's briefing on how Europe and Ukraine 
are transforming defense supply chains.
    As Russia's full-scale war against Ukraine enters its fifth year, 
Kyiv faces an increasingly stark challenge. Ukraine's armed forces are 
struggling to supply their troops and push back against the relentless 
violence and destruction inflicted by Moscow.
    Yet, at the very same time, Ukraine is home to one of the most 
innovative and adaptive defense industrial sectors in Europe, an 
ecosystem that has demonstrated remarkable ingenuity under fire but 
continues to operate far below its full capacity. Through my 
colleagues' and I's discussions with Ukrainians, we have learned that 
what they lack is not ideas or talent but capital, predictability, and 
scalability.
    Over the past years, Europeans, led by Denmark, have pioneered new 
responses to that challenge. Rather than relying on ad hoc donations 
and purchases from national stockpiles, the Danish model identified new 
ways to invest directly in Ukrainian firms. The mechanism empowered 
Ukrainians to expedite procurement and production of urgently needed 
systems, from artillery and ammunition to drones and electronic warfare 
equipment. Many European nations followed suit, including through 
variations that include joint production with Ukrainian companies.
    Today's panel will help us understand how these mechanisms work, 
what is required to scale them, and how they can be adapted by other 
allies, including the United States, and what role they might play in 
securing a peace that lasts.
    We have the great pleasure of hearing from three panelists whose 
expertise spans the operational, industrial, and strategic dimensions 
of this challenge. Their testimonies illuminate not only how Europe and 
Ukraine are transforming defense supply chains today but also how these 
innovations can shape the future security architecture of the 
continent.
    After I introduce them, they will deliver their remarks, and we 
will continue with questions.
    Speaking first, we will have Major General Karsten F. Jensen. Major 
General Jensen assumed the position of Danish defense attache to the 
United States in 2025. He has previously served as a national deputy in 
the F-35 Joint Program Office and as a branch head for Allied Command 
Transformation in Norfolk. In addition to his service abroad, Major 
General Jensen has a distinguished service history in the Danish air 
command and in the Danish joint defense command. He has been deployed 
to Cyprus, Kyrgyzstan, Afghanistan, Kuwait, and Iraq.
    He will be followed by Dr. Sophia Besch. Dr. Sophia Besch is a 
senior fellow in the Europe program at the Carnegie Endowment for 
International Peace, her area of expertise being European defense 
policy. Prior to joining Carnegie, Sophia was a senior research fellow 
at the Center for European Reform in London and Berlin. She has also 
spent time at the American German Institute researching transatlantic 
defense industrial relations. Earlier in her career, she worked as a 
Carlo Schmid Fellow in NATO's policy planning unit and as a researcher 
for the NATO Parliamentary Assembly. She holds a doctorate in European 
studies from King's College London and degrees in international 
relations and international security from Sciences Po Paris and the 
London School of Economics.
    Rounding out the panel, we have Kateryna Bondar. Kateryna Bondar is 
a fellow with the Wadhwani AI Center at the Center for Strategic and 
International Studies. Before joining CSIS, she was an advisor to the 
government of Ukraine, where she was responsible for the implementation 
of reforms in defense, the financial sector, and the innovation 
ecosystem. Prior to that, she also managed technical assistance 
projects implemented in the Ministry of Defense of Ukraine and worked 
in the National Reforms Council under the president of Ukraine. She has 
a bachelor's and master's degree in international relations from Taras 
Shevchenko National University of Kyiv.
    Now I will turn it over to Major General Jensen to give his opening 
statement. Once everyone has had the opportunity to give remarks, I 
will ask a round of questions, and then we will open it up to the 
audience.
    Mr. Jensen: Thank you, Viktor. Thank you for the introduction, and 
good afternoon, everybody.
    I would like to thank you for hosting and inviting me to this 
briefing on a matter which is very important to Ukraine, to Europe, to 
the alliance, and to Denmark. Since the beginning of the Russian full-
scale invasion, the Danish government and the Danish people have been 
steadfast in their support for Ukraine.
    As such, Denmark is one of the countries with the highest monetary 
level of donations per capita. We consider a robust Ukrainian defense 
to be integral to Danish security. Therefore, while increasing our own 
military spending to reach the five percent pledge, we simultaneously 
support the Ukrainian defense.
    From a Danish perspective, strengthening our own defense and 
supporting Ukraine is not mutually exclusive but part of the same 
solution to strengthen European defense and security. In support of and 
in cooperation with Ukraine, last year, we initiated the so-called 
Danish model for procurements. The model has proved to be a defense 
industrial success, delivering capabilities to the Ukrainian defense 
effectively, in time, and boosting the Ukrainian defense industry at 
the same time.
    This model is, in large, successful due to its novel approach to 
procurements and its combination of solidarity with long-term strategic 
thinking. Through the model, Denmark donates directly to the Ukrainian 
defense industry instead of relying solely on purchasing military 
equipment from third countries or donating from national stockpiles.
    The model can finance either existing contracts, reimburse expenses 
held by the Ukrainian authorities, or new contracts entered by the 
Ukrainian Defense Procurement Agency. This allows Denmark to support 
Ukraine with donations based on the priorities and needs of Ukrainian 
security and defense forces.
    The model is based on a government-to-government-to-business 
framework. Such a framework enables the Ukrainian Defense Procurement 
Agency to use Danish donations and acquisitions directly from the 
Ukrainian industry. This does more than deliver weapons and 
capabilities here now. It helps build an industrial foundation that 
Ukraine can rely on for many years to come, while it keeps the 
Ukrainian society going during the war.
    The result-based model proved successful in its pilot project, 
which delivered 18 Bohdana artillery pieces solely funded by Denmark. 
The order was placed in July 2024, and all pieces were battle-ready in 
September of the same year.
    In 2024, the model supported Ukraine with approximately six hundred 
twenty seven million, and in 2025, we expect the level of support to 
reach close to two billion. However, the success of the model is not 
measured by its amount of funding, but the fact that all provided 
donations were delivered and integrated at the expected cost and on 
time.
    The model leads to faster and more targeted deliveries while 
strengthening Ukraine's industrial capacity. At the same time, the 
model ensures appropriate levels of transparency with Danish 
authorities closely monitoring each project, ensuring traceability, 
documentation, and robust anti-corruption mechanisms.
    These include validation processes, Danish authorities verifying 
deliveries, and audit procedures. To underscore the Danish approach 
regarding concerns for potential corruption in our donations, let me be 
frank.
    Yes, with respect to approving the Danish model in the Danish 
parliament, corruption has been a concern. Nevertheless, our parliament 
approved the model unanimously, not accepting corruption but accepting 
risk, realizing that doing nothing is not an option.
    As highlighted by the NATO Secretary General Mark Rutte last week, 
the continuous flow of weapons and support to Ukraine is important. To 
this end, the Secretary General highlighted the Danish model as a 
useful approach to address the needs of the Ukrainian defense forces.
    While this model is called the Danish model, our allies have 
supported Ukraine through the same framework. This includes donations 
from the European Union, from Canada, Sweden, Norway, and Iceland, all 
of which were donated through the mechanisms and procedures of the 
Danish model. We will continuously encourage other allies and partners, 
nations, to join and improve the existing model.
    In conclusion, I will reiterate the Danish model is not just 
military support; it is a partnership, a partnership in which Denmark, 
along with allies and the EU, invests in Ukraine's ability to defend 
itself, strengthen its economy, and build a more resilient future.
    It demonstrates how targeted support can be both principled and 
practical, and how partners can help Ukraine while also preparing for 
the security challenges of tomorrow. I look forward to your questions, 
and thank you again for the opportunity to speak.
    Mr. Sallai: Thank you very much, General.
    Sophia?
    Ms. Besch: Thank you very much, Viktor, and thank you for the 
invitation to this briefing.
    Let me take a step back. In its support of Ukraine, I do see Europe 
now moving beyond emergency assistance and toward the long-term 
integration of Ukraine into its defense industrial ecosystem. Early on 
in the war, European governments were focused on rapid response, on 
keeping Ukraine supplied from national stocks or emergency procurement. 
What began in 2022 as a set of reactive crisis instruments is now 
starting to evolve into something more strategic.
    Defense industrial partnership with Ukraine offers a path to move 
from episodic aid to structured rearmament of both Ukraine and Europe. 
Collaboration can create predictable and scalable ways of rebuilding 
Ukrainian military capacity while embedding the country more deeply in 
European supply chains and its broader innovation ecosystem.
    The strategic logic behind this is fairly straightforward. A 
capable and rearmed Ukraine is Europe's first line of defense and 
strengthens deterrence against Russia, and industrial capacity is 
central to that goal. A Ukraine that can equip, repair, and sustain its 
own forces offers the most credible security guarantee.
    Collaboration also aligns closely with Europe's industrial self-
interest. Working with Ukrainian defense players provides Western firms 
with operational insight and access to a combat learning environment 
that is not available anywhere else in NATO right now.
    All this remains relevant beyond a potential cease-fire. Ukraine is 
set to remain a military and defense industrial powerhouse and first 
line of defense against Russia, and creating robust industrial 
cooperation pathways now will serve European security for years to 
come.
    European MODs and EU institutions absolutely recognize the value of 
closer industrial ties with Ukraine, and the political will for greater 
integration is strong. On the ground, however, firms do still face 
regulatory ambiguity, financial constraints, administrative burdens, 
and, of course, security risks, and these frictions have all slowed 
progress and have so far prevented Europe and Ukraine from realizing 
the full strategic payoff of cooperation.
    That said, it is my sense that 2025 has been a breakthrough year 
that began to unlock many of the most persistent restrictions to 
Europe-Ukraine defense industrial cooperation and that there is real 
momentum building behind this effort now.
    Governments and firms in Europe are experimenting with several 
pathways for industrial cooperation. The most prominent model of 
industrial support has been the direct financing model, or the Danish 
model, which you have already heard about in detail, so I will not go 
into it too much.
    Let me just reiterate that this approach has become an extremely 
effective way to arm Ukraine while strengthening its defense industrial 
base. We have seen variations of the Danish model emerge recently, such 
as the Dutch model, which channels payments directly to Ukrainian 
manufacturers and is more focused on startups, whereas the Danish 
initiative has focused more on heavy equipment.
    Direct financing is highly valued in Ukraine because it gives Kyiv 
maximum flexibility and is responsive to the immediate operational 
needs of the military, and in Europe, it is highly valued, especially 
by those governments without a strong domestic defense industrial base 
at home.
    The main caveat, aside from intense accountability burdens, is that 
this remains a government-financed wartime emergency instrument. Unless 
the direct financing models evolve into longer-term defense industrial 
partnerships, they could, in theory, end fairly abruptly, which makes 
sustainable planning more difficult.
    A second pathway of collaboration is production and co-production 
inside Ukraine. We have seen some initiatives here, particularly in 
ammunition production and in maintenance, repair, and overhaul of 
European-donated equipment. The benefits are clear. Production in 
Ukraine can lower costs, it can build up local knowledge and expertise, 
and, crucially, it brings capabilities much closer to the front.
    Overall, however, collaboration inside Ukraine has fallen short of 
wartime requirements because European firms, particularly in the 
ammunition space, face financial constraints. Ukraine often cannot 
sustain higher volume production.
    They also have to contend with persistent security challenges from 
Russian strikes on industrial facilities to the practical hazards of 
moving personnel and material in a war zone, and the cost of war risk 
insurance for European employees.
    Then added to this are significant bureaucratic hurdles, a highly 
decentralized Ukrainian defense ecosystem, and frequently shifting 
capability requirements, which all complicate long-term planning.
    That said, there are examples of smaller, innovative European firms 
successfully navigating this, especially in the one sector that stands 
out as the most dynamic segment of defense-industrial partnership 
between Europe and Ukraine. I am referring, of course, to uncrewed 
platforms--drones--but also the broader electromagnetic warfare 
ecosystem.
    As you know, battlefield learning cycles in Ukraine, the speed of 
iteration is extraordinarily fast, and European firms that fail to do 
the learning on the ground increasingly find themselves unable to meet 
the emerging standards that are set by Ukrainian certification 
procedures, and so collaboration in this area is essential for European 
firms if they want to remain competitive. It is telling that military 
leaders from NATO frontline states will now routinely ask whether 
systems have been tested and proven in Ukraine rather than taking 
industry claims at face value.
    For that reason, Ukraine has become a magnet for technology firms, 
drone firms, and those providing enabling capabilities that are keen to 
learn more from Ukraine's extremely successful model of civil-military 
integration.
    Some European early mover firms have already successfully built 
plants in Ukraine, hired a local workforce, and acquired stakes in 
Ukrainian tech startups, often on their own initiative. Ukrainian drone 
companies, for their part, are extraordinarily capable but heavily 
capital-constrained.
    Many of them are operating far below capacity, and to support them, 
Ukraine is now opening export facilitation offices in Berlin and 
Copenhagen. The idea is to encourage not just the export of products 
but also investment in Ukrainian production and joint facilities 
abroad.
    That leads me to the third and last pathway for collaboration that 
I wanted to discuss today, and potentially, this is the most scalable. 
That is joint production/joint ventures on NATO soil. Collaboration 
inside Europe provides far safer operating conditions and the ability 
for Ukrainian firms to scale in ways that might not be possible inside 
Ukraine during wartime.
    This pathway is still fairly new, but several Western partners have 
initiated first joint ventures. Denmark, again, stands out as the first 
mover under the ``Build with Ukraine'' initiative. They have recently 
helped a Ukrainian rocket and drone fuel firm establish operations 
domestically. The U.K. has recently launched a licensing deal for 
interceptor drones that will become the first Ukrainian combat system 
licensed for production in a NATO country, but others, I believe, are 
set to follow.
    One last point to make before I close on a very recent EU 
development, and that is on the EU's new defense loan facility, SAFE. 
SAFE is designed to mobilize large-scale investment in European defense 
production, and it explicitly allows and encourages participation by 
Ukrainian firms.
    Most of the recently published member states' plans for SAFE 
already include provisions for the involvement of Ukrainian firms, and 
if it is implemented effectively, SAFE could accelerate defense 
industrial integration, but it will require navigating significant 
structural regulatory barriers to the European market.
    Let me end with this. We are now facing another inflection point 
for the war in Ukraine, with negotiations both over a potential cease-
fire and over the reparations loan based on Russian frozen assets 
ongoing. Quite apart from the results of these processes, for Europe, 
the logic is clear. Ukraine is its forward line of defense, and 
integrating Ukraine into Europe's defense industrial base is an 
investment in the continent's long-term security.
    This is a long-term project. It will require years of commitment 
and resources, but strengthening defense industrial partnerships with 
Ukraine is how Europe turns today's crisis response into a lasting 
strategic advantage.
    Thank you, and I look forward to your questions.
    Mr. Sallai: Thank you, Sophia.
    Kateryna?
    Ms. Bondar: Dear Chair, members of the Commission, thank you so 
much for the opportunity to testify today. The views I express here are 
my own, and they do not reflect the views of CSIS or the Ukrainian 
government.
    Over the past four years of Russia's full-scale invasion, the 
Danish model has become one of the main innovations in sustaining 
Ukraine's military readiness. Let me dig deeper a little bit on the 
problem that the Danish model was designed to solve.
    Ukraine's defense industry has expanded at a pace few have 
anticipated. Ukraine's annual defense production capacity skyrocketed 
from about one billion [dollars] in 2022 to over thirty-five billion 
[dollars] by mid-2025, meaning that the country can now produce thirty-
five times more weapons and equipment each year.
    Production capacity does not matter if the government does not have 
funds to buy that equipment. Just to give you an example, by early 
2024, Ukraine could afford to procure only six billion [dollars] worth 
of equipment despite having closer to twenty billion [dollars] of 
available capacity.
    In other words, two-thirds of possible production sat idle because 
the State simply did not have funding to procure that equipment. At the 
same time, partner nations were running out of equipment they could 
transfer from their stockpiles, and their industrial bases could not 
scale quickly enough to meet Ukraine's growing operational needs.
    It was in this context that the Danish government pioneered a new 
approach. Denmark began paying Ukrainian manufacturers directly to 
build systems for the Ukrainian armed forces. The effect has been 
transformative.
    In 2024, partners spent about $400 million through a family of 
mechanisms, which were called the Danish model. I will expand on this a 
little bit later, and it was mentioned before already.
    In 2025, the number rose to six billion [dollars]. To put that in 
context, Ukraine's entire weapon procurement budget this year is ten 
billion. The Danish model and its variants added another six 
billion[dollars] on top of that.
    The mechanism works because it is fast, structured, and highly 
accountable. The process begins with battlefield need. The Ukrainian 
general staff identifies operational gaps, and the minister of defense 
vets domestic manufacturers based on product maturity, codification 
according to NATO standards, combat performance, ownership, 
transparency, and delivery history.
    The proposed portfolio is then reviewed by joint counsel within the 
Ministry of Defense, after which partner governments conduct their own 
due diligence, including onsite inspections of factories in Ukraine. 
Once approved, the contracts function almost like government-to-
government and business-to-business agreements. Finally, the funds flow 
into dedicated accounts on Ukraine's UNITED24 platform, where companies 
are paid directly from these accounts.
    Denmark physically verifies every batch delivered and the 
documentation accompanying those deliveries. Such details as serial 
numbers, quality certificates, and delivery logs are shared with 
partner governments in real time. The entire system was recently 
audited by Deloitte Denmark and Ukraine's minister of defense's 
internal audit and successfully passed it.
    Importantly, the Danish model has now evolved into a broader family 
of mechanisms. As was mentioned before, the Netherlands, for example, 
signs contracts directly with Ukrainian companies, starting with the 
one-billion [dollars] procurement of Ukrainian drones.
    Norway is adopting the same approach right now. Germany uses a 
version in which the Ukrainian Defense Procurement Agency signs a 
contract with a company, but the German government pays the invoice. 
The variant is especially valuable for the Ukrainian government because 
it strengthens Ukraine's own procurement institutions and reinforces a 
transparent and rules-based procurement system.
    Taken together, these mechanisms are reshaping Ukraine's defense 
ecosystem in several critical ways. First, they unlock Ukraine's 
manufacturing capacity at scale. Ukrainian companies can expand their 
production, hire workers, invest in new technologies, and increase 
output systems for the armed forces, which they actually and urgently 
need.
    Second, they support Ukraine's economy under wartime conditions. 
Direct foreign procurement helps maintain industrial activity, tax 
revenues, and employment, creating resilience well beyond the defense 
sector.
    Third, they reduce corruption risks. This mechanism embeds multiple 
layers of oversight. As I mentioned before, internal Ukrainian review, 
partner government scrutiny, physical inspections, and independent 
audits--these are all mechanisms helping to control corruption issues 
related to government procurement in Ukraine.
    The result is a procurement system where decisions are based on 
battlefield priorities and verifiable performance, not personal 
networks and political pressure.
    Finally, they create a sustainable foundation for long-term 
European and transatlantic security architecture. As partners exhaust 
their own stockpiles, financing Ukrainian production directly is 
becoming the only scalable path to ensuring a continuing flow of 
systems Ukraine needs.
    In conclusion, the Danish model is not just a funding instrument. 
It is a structural innovation in how international partners can support 
the country at war while simultaneously building a more resilient, 
transparent, and modern defense industrial ecosystem. It is one of the 
most effective mechanisms we have for strengthening Ukraine's military 
readiness and ensuring it can sustain its defense in years to come.
    Thank you so much, and happy to answer your questions.
    Mr. Sallai: Thank you very much, everyone, for your remarks.
    My first question will be for General Jensen. Could you briefly 
walk us through the selection, verification, and procurement process of 
the Danish model and explain how the specific anti-corruption 
mechanisms function in practice, particularly how Denmark balances the 
need for accountability with speedy weapon production?
    Mr. Jensen: Thank you for that question. I can try.
    I think my colleague here, Kateryna, just pretty well explained the 
mechanisms to make sure that we have a good oversight of how the money 
is spent. The practical way of selecting candidates for this system is 
that it is built on the needs from Ukraine, so that it is the Ukrainian 
MOD who recommends companies and systems built by that company--same 
system weapons, et cetera. Denmark has a setup where we review, screen, 
and validate these companies and procurement proposals and the prices 
related to that; compare that with market prices and stuff; and after 
contracts are made, weapons delivered, as mentioned before by Kateryna, 
we perform physical inspections, review delivery certificates, and 
verify that everything is delivered as agreed.
    Afterwards, there is even an audit on top of that, an external 
audit with external auditors that audit the audit of the whole thing, 
so I think we are trying to have safeguards and ways to protect that.
    With regard to the balance between speed and accountability, we try 
not to make those two compete. We should not impact accountability 
because of speed, and vice versa. It is built upon the requirement for 
speed, but at the same time, ensuring a maximum level of accountability 
and transparency.
    Even though you could argue that you cannot have speed and good 
oversight, we try to do both at the same time.
    Mr. Sallai: Thank you very much.
    Sophia, my next question is for you. You touched upon this in your 
testimony, but could you expand on how the different defense industrial 
capabilities of European governments shape their approach to 
cooperation with Ukraine when it comes to procurement?
    Ms. Besch: Yes, absolutely.
    As I mentioned in my testimony, there are all these different 
pathways for collaboration that are emerging, and you might wonder why 
certain European governments stick to one, and others stick to another, 
and I think the starting point here is to just look at countries' own 
industrial base and stock depth.
    For example, the Danish model is particularly attractive for 
European countries that do not host their own major defense firms and 
that may have limited stocks to draw from. Germany, at the beginning of 
the war, looked at its own strong defense industry and instead chose a 
model where the German MOD finances contracts--facilitates contracts 
with German firms. That reduces the accountability burden for Germany, 
and it also benefits German defense companies.
    Finland, which entered this war with particularly deep stocks 
because the Finns have been preparing for the exact war that Ukraine 
has been fighting for years, was able to draw from their own stockpiles 
for a long time. Incidentally, both Germany and Finland are now hitting 
the limits of their own domestic production capacity and also of their 
stocks, and so now are eyeing deeper integration with Ukraine as well.
    I will also say that this has implications beyond just which model 
you choose. If you are a small European defense firm right now, there 
are a lot of advantages, and it is potentially lucrative to align 
yourself with Ukrainian firms and align, you know, yourself with these 
kinds of projects that integrate Ukrainian defense firms more closely 
in European defense industrial bases because it positions you well to 
possibly access future EU funding, for instance.
    The SAFE mechanism, which I mentioned explicitly, wants to fund 
projects that include Ukraine. If you have those pathways set up, if 
you are a smaller company, that might be lucrative for you.
    Whereas for the larger primes, some of them are wary of opening the 
European market to competition from Ukrainian defense firms right now. 
What I will say, though, is that talking to European MODs, they are 
looking forward to some competition because we are currently in a 
moment where European MODs, lots of them have a lot of money to spend 
and they have to spend it very quickly, and that means that a lot of 
that money is getting spent on domestic primes right now, which that is 
not great for production time lines. It is not great for price points.
    A little bit more competition from Ukrainian firms that could 
potentially do things faster and more cheaply, I think, will restore 
European competition and, in the end, improve the projects, too.
    Mr. Sallai: Thank you very much.
    Kate, we have discussed these various models cooperating with the 
Ukrainian government and Ukrainian businesses. How do these models 
interact with Ukraine's own internal domestic procurement frameworks? 
This is really both when it comes to their export control regulations, 
as well as any type of bottlenecks that have been created when 
integrating foreign financing and co-production with Ukrainian domestic 
production pipelines.
    What policy adjustments have been made to mitigate these issues, 
and what potential options do we have to alleviate these issues in the 
long run?
    Ms. Bondar: Yes. On the Ukrainian side and its procurement system, 
the Danish model and its variations exist as a parallel system, I would 
say, so they do not replace or substitute the Ukrainian procurement 
system. What they do is add a kind of additional layer on top of it, 
and it started with the Danish model.
    Now we have around five to six different variations, and it creates 
a little bit of difficulty in managing these projects, basically, 
because there is a lot of paperwork, there is a lot of communication 
with foreign procurement agencies and ministers of defense. Basically, 
what could be done and what is the bottleneck is this project 
management and accountability.
    The Ukrainian government would suggest, and that is kind of the 
vision for 2026, to standardize this, all procedures, probably direct 
them more to the Defense Procurement Agency, because this is what it 
was created for. It was one of the demands within collaboration with 
NATO, and that is the best practice of defense procurement.
    Streamlining all these procedures through the Defense Procurement 
Agency of the Ministry of Defense, standardizing approaches, and that 
would probably create more transparency for our partners, an easier 
process of traction and monitoring procurement procedures, and 
basically streamlining the process when everyone's aligned, and 
everyone knows the rules of the game.
    Mr. Sallai: Thank you very much.
    General Jensen, the next question is yours. You have highlighted 
that countless nations have joined the Danish model and various 
variations of it. As the volume of partner contributions and demand for 
these models to collaborate with Ukraine increases, what adaptations 
would the Danish model need to be scaled up for greater production as 
well as multilateral collaboration?
    Mr. Jensen: None, but maybe I should elaborate. [Laughter.]
    Ukraine needs funding, not production capabilities. As we just 
heard, there is plenty of production capacity, and we have already, or 
Ukraine has already, scaled production, so few adaptations are needed 
for the increased multilateral support through the model. Other nations 
are already participating and transferring funds through it, so we have 
the model. It can also work with other nations, and we can easily 
include donations from more nations.
    Of course, if it becomes really big and a lot of procurements 
through that system, we probably need to just scale the model, but not 
change it, is the idea. None.
    Mr. Sallai: Thank you very much.
    Sophia, given how Ukrainian firms must navigate both wartime 
pressures as well as European regulations when it comes to interacting 
through these procurement processes, how can Europe, the European 
Union, and European national governments ensure that their own defense 
regulations do not shut and bar Ukrainian industry out of their 
collaboration opportunities both now and in the long run?
    Ms. Besch: Yes, there is a real regulatory burden challenge now 
that Ukrainian defense firms are looking to enter and integrate with 
the European market more. When I say regulations, those are broader ESG 
regulations, EU regulations, anti-corruption and governance standards, 
of course, but also sustainability and labor protections, strict supply 
chain integrity rules, and human rights compliance.
    These rules are hard to meet for any defense firm in Europe right 
now, but wartime due diligence and site checks for Ukrainian defense 
firms are, obviously, particularly hard. The good news is that there is 
a broad recognition in Europe of this challenge, of this problem, and 
there is real momentum right now to reduce unnecessary regulatory 
barriers.
    We see this shift in all European MODs toward spiral development 
rate, good enough systems, fast iterations, rather than these artisanal 
NATO standard systems of the past, and so there is a real will and 
drive to get the regulatory burden down.
    The Commission has been in the lead on this. They have published 
their--it is called the defense omnibus package that tries to 
streamline procedures, accelerate production. It is also important to 
say that while European MODs will be quick to blame Brussels, a lot of 
these bottlenecks are national bottlenecks that come from national 
procurement systems, and often it is not just a question of, you know, 
a bonfire of regulations; it is also a question of increasing 
administrative capacity.
    For instance, if you need many security clearances, and that is one 
of the reasons that processes are being slowed down, the solution might 
not be to get rid of the requirement for security clearances, but to 
hire more people who can give you those security clearances.
    That is currently also a learning process that is happening in 
European MODs, and, ultimately, this is in Europe's own interest. I 
think Ukraine's integration can serve as a catalyst and accelerator 
here.
    Mr. Sallai: Thank you very much.
    Kate, as we know, these new, fast-evolving technologies tend to 
have much faster innovation cycles than traditional procurement 
timelines, especially when it comes to drones and electronic warfare 
systems.
    How can governments, both the Ukrainian government and European and 
American governments, ensure that safety and accountability standards 
are maintained while also innovating their procurement mechanisms to 
accommodate these fast-evolving technologies?
    Ms. Bondar: Yes, that is a very good question, and it's really hard 
to find this balance, and we are still trying to figure it out on the 
Ukrainian level, and with European governments, it is even harder 
because we have multiple opinions and legal systems and procurement 
systems.
    My general recommendation would be to lower the level of risk 
aversion, to accept risks related to adopting and using systems that 
are not tested, like, according to all usual acquisition procedures, so 
basically to shorten the cycles of testing and evaluation and adoption 
into service, and usually, what happens in Ukraine, the battlefield 
shows what works, what is not. It helps to refine systems and to pick 
the best ones and to select the best ones.
    Cutting the red tape in procurement process that would also be 
helpful so basically what happened in Ukraine is that the minister of 
defense and the government sat and analyzed what are the critical and 
crucial points in acquisition and procurement process and which stages 
can be basically skipped, so leaving only the most necessary and 
crucial stages and accepting more risk in procurement and acquiring 
systems that are new and not known to the military yet. Those would be 
my two recommendations that could be done.
    Mr. Sallai: Thank you very much. I have one last question for all 
the witnesses, and then if anyone else has questions, feel free to walk 
over to the podium.
    I have a question for anyone or whoever would like to answer this. 
With the recent peace negotiations between Ukraine and Russia 
continuing to struggle, how do you see these procurement mechanisms 
contributing to a future, durable peace in Europe?
    What aspects of these mechanisms are essential to ensuring that the 
West is negotiating from a position of strength, as well as acting as a 
deterrent against future Russian aggressions?
    Anyone? Yes, sorry.
    Ms. Besch: Now, I am really glad that you are asking this question 
because, in a way, it is sort of the main message of my testimony 
today. I think as the peace negotiations are going on, these emerging 
procurement and co-production models are central to a durable peace 
because any settlement is going to have to rest on real military 
resilience.
    Europe and Ukraine are now building the industrial depth that 
underpins credible deterrence through direct financing, through joint 
manufacturing, through co-production. We do see this shift from ad hoc 
to predictable and scalable rearmament. The effects of that are so 
enormous, with Europe gaining a forward defense line that is integrated 
into European supply chains and integrated into our own defense 
industrial ecosystem. That gives us negotiating leverage as well, 
right? Russia takes talks seriously only if Ukraine's capability and 
Europe's support appear non-exhaustible.
    There is a long-term deterrent value here. Ukraine is not going to 
return to a position of industrial vulnerability if we commit to a 
defense industrial partnership. Its defense sector is going to be tied 
into Europe's. Its production is going to be diversified across Europe 
and Ukraine.
    That also allows a broader integration of Europe into the--of 
Ukraine into the EU sector by sector--defense is just one of them--and 
Ukrainian battlefield learning is going to continue to shape European 
capability development, which is going to empower European rearmament 
efforts, too.
    To me, the bottom line really is that industrial cooperation is a 
foundation for any sustainable peace.
    Ms. Bondar: I will probably add to that that I also do research on 
Russia a lot, and I am trying to understand what their leverage is and 
what they are better at, and what they are better at is at scale--scale 
of production and mass deployment of new systems.
    Unfortunately, none of the European countries can counterbalance 
Russia alone. Only working together, European countries and Ukraine can 
offer something against Russia, and I think that will be the biggest 
leverage in any negotiations.
    Second, this process of approach in the Ukrainian industry and 
European industry is crucial and important because when we get into the 
weeds of the process, when we get into details, we see things like 
differences in doing business practices, for example, why the Dutch 
model faced many obstacles in the beginning. Just because the Dutch 
were not prepared to do advancement payment in the beginning, the 
amount of 50 [percent] to 70 percent to Ukrainian companies. It is 
unknown practice in Europe, which is pretty common for Ukrainians.
    If we start integration on this practical level, very tangible 
integration, I think it will be easier to build up later political and 
other types of integration. You know, to be strong in negotiations, we 
need to integrate Ukraine into the European security architecture and 
community first, and then we will be able to counterbalance Russia in 
terms of its scale.
    Mr. Sallai: Thank you.
    General?
    Mr. Jensen: Agree. Maybe I should add, anyway, since I pressed the 
button here, that we went from initially lots of nations donated 
weapons and systems and material, partly because Ukraine needed it, but 
partly because that is what we could spare.
    Ukraine ended up with a myriad of systems and weapons and stuff, 
and some of it was really good and useful, and some of it is still in 
its boxes because nobody could train it or you could not sustain it or 
anything, and that is not a way of helping Ukraine that will last past 
any peace agreement. That will die out the day there is a peace 
agreement.
    By this system, the Danish model, we facilitate processes as well 
as industry, as well as society, to continue, no matter where the money 
comes from, internally from tax revenue in Ukraine or from donations 
from allies. This is a more durable and sustainable model, war or 
peace.
    Thank you.
    Mr. Sallai: Thank you very much, everyone.
    With that, we can turn to questions from our audience. If you would 
like to ask a question, please walk over to the podium and introduce 
yourself.
    Question: Hi. I am Maggie. I work for the U.S. Helsinki Commission 
as an intern.
    My question for anyone who wants to answer it is, as we watch 
Europe utilize these models and sort of perfect them, what should the 
U.S. be learning from this, and what role could or should the U.S. play 
now and in the future?
    Ms. Bondar: Okay. I can start.
    Basically U.S. can leverage the experience of working with the 
Ukrainian defense industry either by financing or co-developing 
military systems because what is happening in Ukraine will have its 
effects across the globe.
    In every conflict, in every theater, we need to learn the lessons, 
we need to analyze the patterns that are present there. By involving 
into Ukrainian defense industry and working with Ukrainian companies 
that have firsthand access to the battlefield and constantly 
communicate with warfighters on the frontline and with the Ukrainian 
Special Forces and intelligence, they can gain what is most valuable, 
experience, and then integrate this experience into the U.S. military. 
Co-production/collaboration with the defense industry is one of the 
ways to do that.
    My suggestion would be to look a little bit broader, so to still 
look into joint training, joint exercises, just to practice and to see 
how Ukrainians fight--what patterns are on the battlefield, what 
tactics they use, what doctrine. Because Ukrainians also have a very 
deep knowledge of Russian tactics and doctrine, that should also be 
integrated into the U.S. TTPs and doctrine, et cetera.
    Because China is learning from Russia. Because Putin went to India 
just recently and established military collaboration with India. These 
are big powers, and the U.S. should be prepared, and Ukraine is the 
entry point--is this starting point where they can--where the U.S. 
military can have a look and glance into what is happening on the enemy 
side, basically.
    Ms. Besch: Let me just add to that, because I think I agree with 
everything that was just said. I think looking across the various 
European initiatives that we discuss here today, there are a few 
practices that stand out as relevant for the U.S., but I would also say 
that not all of them are directly transferable, right?
    Europe's mantra, ``if the Ukrainians are not using it, we are not 
interested''--that is the mantra of defense planners right now--that is 
really rooted in Russia-focused defense and deterrence planning, and 
the U.S., as you all know, faces a broader set of contingencies and is 
not going to adapt the European way of warfare wholesale.
    Similarly, you know, Europe's political goal of integrating Ukraine 
into the EU's single market sector by sector, it seems to me from what 
I hear from this administration, that the U.S. posture currently is 
shaped more by industrial onshoring and a desire to end the war 
quickly, which, you know, also limits the depth of U.S.-Ukraine defense 
industrial ties.
    What lessons are transferable, I think, are the embrace of 
battlefield learning and co-development, especially in drones, and 
there is a strong U.S. interest in this, too. There is this line of 
drones--CEO of Quantum Systems, and he said that, you know, innovation 
in drones right now is coming from the Donbas, not Silicon Valley. That 
is something that U.S. firms have understood, too. We are seeing early 
U.S.-Ukraine industrial integration steps with joint drone production 
deals, you know, the joint venture for high-speed interceptors that was 
just announced. These kinds of mutually beneficial partnerships are 
tied to real battlefield requirements and rapid iteration. I think that 
is the best avenue for deeper U.S.-Ukrainian defense-industrial 
cooperation.
    Then, just to end with another lesson, I think that is relevant for 
the U.S., is just the enormous number of systems that are being used up 
in this war. You know, on certain phases we have had thousands and 
thousands of drones being deployed by both sides in just a month and 
that has to lead to considerations of how deep your stockpiles need to 
be in order to sustain such an effort, not just of drones and 
ammunitions but also of all the materials that it would take to build 
these things--chips, sensors, batteries, all sorts of things that are 
not necessarily built in the U.S. anymore.
    Securing those strategic supply lines is a big challenge for 
Ukrainians, Europeans, and I would think that is also a lesson that 
American defense planners can adopt.
    Mr. Jensen: Yes, I also agree, and I think depending on what the 
strategy is for the U.S. I agree with what you have said, that it seems 
like there is a slightly different, or not a slightly--there is a 
different strategy from the U.S. perspective that is more global than 
just the European AOR and so--and also the U.S. perspective on U.S. 
defense industry needs to be part of this.
    If that was not the case, just adapt the Danish model, but I think 
it is the case, so to be realistic, I think it is more--in a different 
arena, the U.S. could learn from this.
    I think the speed of innovation in Ukraine is unique, the speedy 
introduction of new capabilities, and also that, you know, the best is 
good enough's worst enemy so you need to deliver at time--just enough 
at time instead of, you know, the very best all the time because you 
cannot afford--you do not have--you cannot afford to have enough mass 
when you do that.
    I think that is where we all could learn something from the war in 
Ukraine.
    Mr. Sallai: Thank you. Any other questions?
    Question: I used to do this, so you would think I would know, but I 
am Jared Smith from With Honor.
    I think that the West, and especially the U.S., is starting to 
learn that so much innovation can potentially be hamstrung by our 
inability to diversify and secure our supply chains. You know, I am 
just wondering from either the Danish or, you know, Ukrainian 
perspective what are the best practices that we can do now in order to 
make sure that any of these drones that we are building; the sensitive, 
you know, critical minerals or magnets, are being gotten from friendly 
nations as opposed to China so that we are not put in a position where, 
you know, one day we are launching drones that can be turned off with a 
flick of a button from Beijing.
    Ms. Bondar: Again, no silver bullet solution for that--[laughs]--
unfortunately, and as Ukrainians are saying, Russians and Ukrainians 
are eating from the same bucket, which means the components come from 
China.
    Ukraine recently, just a couple of weeks ago, launched separate 
initiatives called Local Components, and for a reason. They realized 
that strategically, if you want to be a leader in the industry and if 
you want to be able to protect yourself, let us put it simply, you have 
to be independent in supply chains.
    Ukrainians took this approach, actually, as Russians did as well. 
They want to localize starting with the simplest components and then 
going deeper and deeper. That is the approach countries at war take.
    We know that resources are not placed equally in the world. We need 
to find them, basically, and we need to invest in extraction and 
refinement. That is what Russia does. They analyze the whole supply 
chain for Shahed drones, for example, and they start to localize with 
the easiest products, and now they want to substitute Chinese batteries 
with local production. They started with an investigation where they 
have resources and how they can build a supply chain independently from 
China or diversify the supplies, including India.
    That is why I think it shows us what could be done and also what is 
useful in this case to look into as a model, how these two countries 
build their defense ecosystems. Ukraine is an example of a 
decentralized ecosystem where we have lots of manufacturers. They 
produce different types of systems. Ukraine uses 400 types of drones 
monthly. It is a zoo of technology, and imagine how many manufacturers 
exist.
    Russia has a centralized and very different approach. They pick a 
champion, so Shahed drones were a champion for long-range capability. 
Now they have selected a couple of manufacturers for [FPV] First Person 
View drones in Groups one and two, and Kalashnikov, their biggest 
state-owned military enterprise, is investing in those companies to 
scale their production, and what they do, they put all resources behind 
these national champions and winners, so basically they want to grow 
their own DJI, for example.
    I know it is an unpopular opinion in the West, where we have free 
market and competition and lots of companies, but maybe a way to solve 
the issue with supply chain independence and being able to build at 
least the most necessary types of systems locally is to pick those 
champions and to put all resources behind them.
    If we identify and we find a solution for small but local, you 
know, rare earth and the whole supply chain built from there, maybe we 
should give those resources to companies that are able to produce at 
scale for the U.S. or European military.
    That is one of the ideas. I am not saying it is the best idea, but 
this is what we can see, again, from the analysis of the ongoing war.
    Mr. Jensen: That is a great question, and actually, I do not have 
an answer. I have another question. [Laughs.]
    I think what you are mentioning is the result of globalization 
through many years. We all thought that this was a God-given way to 
create the best value for money, and we will all be richer in that 
manner, which is correct. That is what happened.
    We are paying the price now, so we need to figure out how to still 
get the best value for money but still have sovereign control of 
strategic resources, and those two are, you know, a contradiction 
competing about the same answer. There is no one answer to those two 
problems.
    I do not think protectionism is the answer, but I do not have the 
right answer, so sorry.
    Mr. Sallai: Thank you. We have time for one or two more questions.
    Question: Hello. Thank you. My name is Kyle Parker with the 
Helsinki Commission.
    I have a couple of questions related to the kit involved, and then 
a couple of questions related to a contingency in the future of sort of 
supplying, sustaining Ukraine, in the event that the United States 
walks away from supporting Ukraine as has been threatened.
    On the question of the kit, how much, roughly, percentage of the 
kit that Ukraine is using on the battlefield is being produced by 
Ukraine? Not just by Ukraine with these funds, with funds through 
things like the Danish model, but just generally. Then also a very 
rough estimation of how much of that kit is actually of interest to 
European NATO states in terms of their own defense, something that 
could be ultimately sold or transferred.
    Then my second pair of questions, and these are--and I understand 
we are short on time, so these can be for whoever feels is best capable 
of answering them. In the event that the U.S. walks away from 
supporting Ukraine as has been threatened recently, even very recently, 
and by walking away, it seems to be unclear what that means, but I 
would suspect it could mean a lack of willingness on the part of the 
United States to either continue selling its own kit to European states 
to then transfer to Ukraine.
    I assume it could also mean a lack of willingness to continue 
intelligence sharing with Ukraine, and I assume it could also mean, 
potentially, you know, a lack of willingness to allow U.S. assets--
bases, logistics, infrastructure in Europe--to supply this.
    My question there is, you know, how reliant is Europe on U.S. 
advanced weaponry to supply for Ukraine, you know, as well as how 
replaceable is the intelligence component. Then I guess the other--yes, 
I think the other question is lift, logistics, sustainment--how capable 
is Europe in doing this itself without any U.S. involvement?
    That is probably enough. Thank you.
    Mr. Jensen: May I suggest that the first couple of questions will 
be directed at Kate here? Then I would like to try the last part, but 
if you want to start.
    Okay. Because I do not know the numbers. Where is the gentleman?
    Okay, sir. I do not know the numbers here, so I hope maybe you can 
help with that, the ratio between Ukrainian-produced material and the 
rest.
    I would like to address the last question that you have: What if 
the U.S. walks away, and the top--the bottom line here is that that 
would be a problem. It is a big problem today. I think the problem will 
maybe be less over time since we are building up in Europe, but 
building up to the degree we are about to do takes not only weeks or 
months; it takes decades.
    That will be a problem if that happens tomorrow. I do not think it 
is in the U.S. interest, though, to do so, but that is a political 
decision, of course. There is a reason that the U.S. is present in 
Europe because being present--you know, with that follows influence, 
like now, you see, and also allowing Europeans and the Ukrainians to 
buy U.S. equipment creates jobs and revenue, and tax and bonds go up, 
and stuff like that.
    It is in the U.S. interest to stay involved, to allow weapons and 
systems to be delivered. You can say, okay, so what about the Intel 
support? Also, a big problem, but I think the Ukrainians, together with 
other European nations, are also upping that area with the introduction 
of more and more drones and stuff. Surely, the space area is maybe the 
biggest one where we in Europe are far behind, and that will take time 
if we need to catch up on that.
    Again, I think you should not see the Intel thing in isolation. I 
think you should combine them with the other two things I mentioned. If 
you want influence, if you want to earn money, and if you want to buy--
us to buy European equipment, well, we need to have a mutual trust.
    We need to have businesses. We need to have operational and 
strategic cooperation. That drives us to buy stuff here and work with 
the U.S., and that sends money this way across the Atlantic. It would 
be a problem, but also for the U.S.
    Ms. Bondar: I will try to answer your question real quick.
    Unfortunately, I do not have numbers just because they are 
classified. It is not public information what Ukraine gets in which 
amounts and from where, but a couple of numbers I still have in my 
mind.
    On drones, it is ninety-six percent produced locally, only four 
percent delivered from abroad, and according to the minister of 
defense, these are just experimental systems and, you know, small 
little batches, but ninety-six percent. Both small Groups one-two long-
range capabilities, are produced in Ukraine.
    Again, it is a little bit questionable because almost a hundred 
percent of Ukrainian small drones have Chinese cameras. Yes, these are 
locally produced drones, but they are produced from foreign components. 
That is why, you know, we do not have to dig very deep into this to 
keep it short.
    On air defense systems, for example, Ukraine is a hundred percent 
dependent on our partners. Yes, now air defense has become multilayered 
and mobile groups, for example, and interceptor drones are produced in 
Ukraine, but it is way bigger dependence on foreign assistance. It is 
really hard to give an estimated number because part of the information 
is classified, and part is questionable.
    On your second question, also real quick, you mentioned--well, I 
will talk about the Ukrainian side and what if the U.S. walks away. 
Yes, we need weapons, and there are very sophisticated systems that 
cannot be replaced by any other type of equipment, and we need to buy 
them from the United States, including air defense.
    You mentioned intelligence information. That is also crucial. It is 
not that, you know, publicly discussed or obvious, but it is crucial 
because Ukraine makes its bet on long-range strikes, trying to destroy 
the Russian economy and to stop the war, if we can say so, by just 
disabling the Russian economy. To conduct deep strikes, Ukraine needs 
foreign intelligence, and it is impossible to replace or substitute 
with only Ukrainian means. That is basically crucial, because if that 
information sharing stops, Ukraine will not be able to conduct any deep 
strikes. That stops the Ukrainian war effort, because on the frontline, 
Russia, unfortunately, has an advantage, and we know about that. 
Ukraine's best hope is deep strikes and destroying the Russian economy 
first.
    Ms. Besch: I will be super brief.
    I think the way that you asked the question is exactly the right 
way to ask that question--what does stepping away actually mean--and 
that is how Europeans are currently trying to disentangle this as well. 
What steps can we expect when, right?
    The way that you used the term kit, I think, is--sometimes that can 
be a little bit confusing because really it is not the hardware so much 
that is of interest for Europeans in terms of what we are learning from 
the Ukrainians. It is all the enabling capabilities of the electronic 
warfare around it, and this is also where we are still the most 
dependent on the United States, right?
    This is, to me, how your questions interlock right now, and I will 
just say, while I agree with everything that the major general has 
said, I would never presume to know or to state the U.S.'s interests. I 
do think that there are clear messages that Europeans are currently 
getting about the U.S. being open for business, and PEARL is a good way 
and a good mechanism in that general vein.
    There have been some really useful negotiations happening over what 
PEARL actually covers, for it to cover only those capabilities that 
Europeans cannot produce or do not currently have themselves, and that 
seems fairly--at least on a self-interest basis, a fairly sustainable 
way of going about it.
    Then equally having that kind of more sort of staged conversation 
of, okay, you want us to stand on our own feet; these are the 
capabilities that we are currently investing in. We are going to need X 
amount of years to get there. I think that is the kind of more 
constructive conversation that is happening behind the scenes right 
now, and that is where Ukraine, again, plays such a crucial role as a 
catalyst and as an accelerator.
    Mr. Sallai: Thank you very much to everyone who has attended, and 
especially to our witnesses. With that, the briefing has ended.
    [Whereupon, at 3:07 p.m., the briefing ended.]

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