Denmark has pledged 1.6 billion Danish crowns ($253 million) to support Greenland’s healthcare and infrastructure between 2026 and 2029, amid rising international interest in the Arctic island.
The agreement, signed in Copenhagen by Danish Prime Minister Mette Frederiksen and Greenlandic Prime Minister Jens-Frederik Nielsen, will fund projects including a new landing strip in Ittoqqortoormiit in eastern Greenland and a deep-water port in Qaqortoq in the south. Denmark will also cover medical treatment costs for Greenlandic patients at Danish hospitals, shifting a financial burden previously shouldered by Greenland, News.Az reports, citing Reuters.
The funding supplements Greenland’s annual block grant of around 4.3 billion crowns and comes as the island faces economic challenges, with declining shrimp and halibut stocks weighing heavily on its fisheries-driven economy. An ageing population and reliance on state-owned enterprises have added further pressure.
Greenland’s pro-business government, elected in March, has pledged economic reforms while seeing Denmark as its key partner on the road toward eventual independence.
“This deal aims to support a self-sustaining Greenland with, among other things, long-term investments,” Nielsen said.
The announcement comes as foreign powers, particularly the United States, intensify interest in Greenland’s strategic location and rich reserves of oil, gas, and critical minerals. Denmark also launched a major military drill in Greenland this week, following U.S. criticism that it is not doing enough to secure the territory.
