The UK defence company BAE Systems establishes a Ukrainian subsidiary amid conflict.

The UK defence company BAE Systems establishes a Ukrainian subsidiary amid conflict.

UK defence giant BAE Systems has initiated operations in Ukraine and inked agreements aimed at bolstering the supply of weapons and military equipment to Kyiv. This strategic move allows BAE Systems to engage directly with Ukraine, fostering potential partnerships and eventually enabling the local production of lightweight artillery.

BAE Systems has been a significant contributor to the arms shipments sent to Ukraine by the UK and other nations. Following the Russian invasion in February 2022, the UK emerged as a prominent defence supplier to Ukraine, greatly enhancing its defensive capabilities.

Ukrainian President Volodymyr Zelensky has emphasised the paramount importance of developing domestic weapons production. He conveyed this message via X, the social media platform previously known as Twitter, shortly after a meeting with BAE’s CEO, Charles Woodburn. The agreements signed and the establishment of a legal entity in Ukraine underscore the deepening trust and support between Ukraine and BAE Systems. This collaboration paves the way for more direct assistance to the Ukrainian armed forces.

Furthermore, Ukraine and Sweden have signed a statement of intent to strengthen cooperation in the production, operation, training, and servicing of CV90 armoured vehicles. These vehicles are currently manufactured by BAE Systems’ Hägglunds business in Sweden. This initiative aligns with Ukraine’s ambition to bolster its arsenal and generate employment opportunities to revitalise an economy severely impacted by the ongoing conflict.

In addition to its role in the defence sector, BAE Systems has witnessed a remarkable surge in its share price, soaring by over 75% since February 2022. The company has already been providing training and repair services to Ukraine’s military, further solidifying its commitment to supporting Ukraine’s defence efforts.

As a global player in the arms, security, and aerospace industries, BAE Systems operates across approximately 40 countries, employing a workforce of 93,000 individuals. It holds the distinction of being Europe’s largest defence contractor, boasting annual sales exceeding £23 billion and recording nearly £2.5 billion in profits in the preceding year. This expansion into Ukraine marks a significant step forward in BAE Systems’ commitment to enhancing Ukraine’s defence capabilities and contributing to its economic recovery in the face of adversity.


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