Denmark has unveiled plans to bolster its military presence in the Arctic amid rising concerns over the U.S. interest in acquiring Greenland, a Danish-owned territory.

Danish Defence Minister Troels Lund Poulsen announced late Monday that the government will allocate 14.6 billion Danish krona (approximately $2 billion) to boost the defence of Greenland, Arctic Sea and Northern Atlantic. The decision follows an agreement among Danish political parties.

The plans will include three new arctic naval vessels and two long-range drones, increased surveillance and crisis training for the local residents. Poulsen said in a press conference that these preparations are just the initial phase, with further plans expected to be finalized by summer.

According to Danish Broadcasting Corporation, the new vessels would enter service within five or six years, expected to replace existing vessels.

When questioned about whether these measures would "calm down" U.S. President Donald Trump's interest in Greenland, Poulsen refrained from a direct response, underlining the importance of co-operation with NATO allies, including Canada, the United States and Norway.

President Trump has recently reiterated the U.S. interest in Greenland, which remains an autonomous area under Danish sovereignty.

Referring to an upcoming meeting on Tuesday with German Chancellor Olaf Scholz, French President Emmanuel Macron and NATO Secretary General Mark Rutte, Danish Prime Minister Mette Frederiksen said Europe is in a serious situation. "With war on the continent and changes in the geopolitical reality. In such a time, unity is crucial."

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