In 1977, the U.S. allowed Israel to use foreign military funding to acquire Merkava tanks, and seven years later, it formalized a program where Israel allocated $250 million in foreign funds for what’s called “offshore procurement.” This program has been ongoing, reaching a total cost of $819 million by 2019. Although it’s set to conclude in 2028, Israel will still receive $450 million for domestic military projects in 2025.
The offshore procurement deal between the U.S. and Israel is distinct to Israel and plays a vital role in bolstering the nation’s evolving arms industry. However, even as Israel’s ambitions contract, it’s probably time to consider extending this initiative to Ukraine and Poland too.
As the conflict with Russia continues, Ukraine’s arms industry is impressively advancing. Initially centered around artillery and tank ammunition, it now produces a diverse range of unmanned aerial vehicles—both short and long-range systems—positioning itself among the top global players in unmanned technology. Currently, around 40 percent of the weaponry used by the Ukrainian military is domestically made; President Volodymyr Zelenskiy anticipates this will rise to 50 percent by year-end.
Ukraine’s arms sector growth has been spurred by various private companies and governmental support for tech development. Moreover, Ukrainian manufacturers are establishing production sites within the country and collaborating with international partners like Germany’s Rheinmetall, which is engaging in joint ventures with local firms.
Furthermore, eight nations have adopted a model initiated by Denmark, providing funds to aid Ukraine’s arms industry through a program called “Freedom to Make Zubroyary.”
Specifically, Denmark finances Ukraine’s direct weapon purchases from its defense industry. In July, Copenhagen secured an agreement with Kiev for Ukrainian manufacturers to produce weapons on Danish soil. By September, this plan took tangible shape when Ukrainian firm Fire Point announced it would begin producing solid rocket fuel in a new facility in southern Denmark.
This Danish support framework for Ukraine mirrors the 40-year-old U.S. offshore procurement program for Israel, which currently surpasses governmental assistance to Ukraine. The Trump administration is supplying weapons indirectly, allowing European nations to acquire U.S. supplies to replace military equipment sent to Kiev.
The U.S. could indeed broaden its approach. Even if there’s hesitance to deplete its own weapons reserves, especially given current shortages, it might adopt a “Danish model,” which offers a European version of the offshore procurement strategy. With the annual funding to Israel decreasing, reallocating some of that budget to enhance Ukraine’s arms industry could be a viable solution.
Moreover, it might be worthwhile for the U.S. to consider directing a segment of Ukraine’s offshore procurement funds toward collaborative arms development with Poland. This aligns with President Trump’s commitment to Poland and the recent agreement between Warsaw and Kiev aimed at shared arms production.
When President Trump talked with Polish President Karol Nawrocki on September 5, he indicated a readiness to increase the U.S. troop presence in Poland, already numbering 8,000. Following an incident where a Russian drone encroached on Polish airspace, Trump reinforced America’s pledge to protect Poland and the Baltic states from Russian threats. Supporting joint arms development between Ukraine and Poland via an offshore procurement initiative would emphasize his dedication to Warsaw.
The U.S. offshore program has enabled Israel to transform into a significant arms production and exporting power. Establishing a similar initiative for Ukraine, and fostering joint production with Poland, could enhance military capabilities and strengthen deterrence against Russian aggression.
With Russian President Vladimir Putin showing no inclination towards peace and increasingly aggressive maneuvers testing NATO’s response, the timing for an American offshore procurement program aimed at boosting Polish-Ukrainian arms production could not be more critical.
