- UK defense giant BAE Systems has established a legal entity in Ukraine and signed agreements aimed at increasing the supply of weapons and equipment to Kyiv.
BAE’s move enables direct collaboration with Ukraine, with the goal of identifying potential partners and eventually manufacturing light artillery within the country.
Since Russia’s invasion in February 2022, the UK has emerged as a significant defense supplier to Ukraine.
BAE’s role in Ukraine’s arms supply, business and collaborative efforts
BAE has played a crucial role in facilitating arms shipments to Ukraine, but it currently has no immediate plans to establish a physical presence or factory in the country.
Ukrainian President Volodymyr Zelensky emphasized the importance of developing domestic weapons production.
He made this statement following a meeting with BAE’s Chief Executive, Charles Woodburn, highlighting the significance of the agreements and the establishment of a legal entity in Ukraine.
This move strengthens the existing trust and support, enabling more direct assistance to the Ukrainian armed forces.
In addition to BAE’s efforts, Ukraine and Sweden have signed a statement of intent to enhance cooperation in the production, operation, training, and servicing of CV90 armored vehicles, which are currently manufactured by BAE Systems’ Hägglunds business in Sweden.
While BAE’s share price has surged by over 75% since February 2022, it does not have immediate plans to open an office in Ukraine.
However, Kyiv is eager to increase its weapons and military equipment supplies to stimulate economic growth in a nation heavily impacted by the conflict.
BAE Systems, a multinational arms, security, and aerospace company, employs approximately 93,000 people in nearly 40 countries worldwide.
It is Europe’s largest defense contractor, with annual sales exceeding £23 billion and profits of nearly £2.5 billion last year.
