British defence giant BAE paves way to building artillery in Ukraine

BAE Systems, the maker of the UK’s Navy ships and warplanes, has signed a deal paving the way to building British-designed light artillery in Ukraine.

The FTSE 100 defence giant has agreed to set up a legal entity in the country following a meeting between chief Charles Woodburn and Ukraine President Volodymyr Zelensky in Kyiv earlier this week.

Mr Woodburn said the agreement “paves the way for us to work together to provide more direct support to the Ukrainian armed forces,” in a sign that BAE plans to explore local manufacturing and direct deals with the Ukrainian army.

Oleksandr Kamyshin, Ukraine’s minister for strategic industry, said: “I am grateful to BAE Systems for the bold decision to stand side by side with us in the fight against Russian aggression and building the future of the Ukrainian defence industry.

“Together with the company, we will be able to localise the production of advanced weapons.”

The Telegraph revealed in February that officials were laying the groundwork for British weaponry and military vehicles to be manufactured in Ukraine under plans that would mark a deepening of the country’s ties with Nato.

Local manufacturing would help Ukraine to better plan and reduce its reliance on donations of stockpiles in the West.

The precise structure of any manufacturing deal is yet to be ironed out.

Ukrainian arms companies could build BAE weapons under licence, or locally assemble parts made elsewhere. Other options include establishing joint ventures in the country.

If a local factory is built, it would be done after much research and its location would likely remain secret for security reasons.

BAE already makes much of the hardware and weaponry donated to Ukraine’s armed forces by Western governments, including M109 self-propelled howitzers, the M777 artillery piece and the truck-mounted Archer system, which it makes in Sweden.

The US has donated 50 Bradley fighting vehicles, made by BAE in the US, while Sweden has sent 51 BAE-made CV90 armoured vehicles. The UK has sent 14 Challenger 2 tanks made by the company.

BAE said it would begin to “explore the supply of light guns to Ukraine” directly, rather than via donations from Western allies.

The company intends to consult with Armed Forces Ukraine to understand its needs and help build up Ukraine’s industrial base for weapons making.

An early target for local manufacturer is understood to be the L119 howitzers. They are designed to be light enough to be towed by a large truck or even lifted by helicopter. A similar gun is used to mark One O’Clock at Edinburgh Castle every day bar Sunday.

President Zelenskyy said in a statement: “We highly appreciate when private companies open their offices in our country at such a time. First of all, this is a very important signal of support for our people, Ukrainian citizens.”

Mr Woodburn said: “Alongside our government customers, we’ve been discussing with President Zelensky and his team how to best evolve the support that we’re already providing to Ukraine.

“Signing the agreements and establishing a legal entity in Ukraine builds on our existing trust and support.”

Western defence companies are deepening ties with Ukraine amid signs that the war will continue to drag on for possibly years.

Rheinmetall, the German maker of the popular Leopard tank, has already said it will build an armoured vehicle plant in Ukraine after signing a deal in May with Ukraine’s state-owned conglomerate Ukroboronprom.

Germany’s biggest arms manufacturer reportedly plans to make 400 of its new Panther main battle tanks a year in Ukraine.

Russian security council deputy head Dmitry Medvedev responded to the partnership by threatening bombing raids on Rheinmetall factories.

Mr Medvedev said on the Telegram messaging platform in March: “The decision should be greeted with salvos of cruise missiles and other Russian pyrotechnic devices.”

The BAE announcement comes days after Ukraine and Sweden signed an agreement to jointly produce, operate and provide support for BAE’s CV90 armoured vehicles.

The CV90, a rival to the troubled Ajax model in the UK, features a 40mm cannon, grenades and machine guns and is one of the most popular armoured infantry vehicles in Europe. Sweden, Norway, Finland, Denmark, Estonia, Slovakia, the Netherlands and Switzerland have all purchased the vehicle.