By Anthony Marcus, for Eurasia Business News, August 31, 2023

British arms manufacturer BAE Systems is starting work in Ukraine, Ukrainian President Volodymyr Zelensky wrote on his Telegram channel.

“I met with the company’s CEO, Charles Woodburn. Very productive: the company’s office in Ukraine, localization of production in Ukraine,” Zelensky said, after a meeting with Charles Woodburn, Chief Executive, BAE Systems.

He noted that the Ukrainian military is already using BAE Systems weapons. In particular, we are talking about the L119 and M777 howitzers, as well as the CV90 infantry fighting vehicle.

The press service of the Ukrainian president reported that following a meeting in Kyiv earlier this week, the parties signed an agreement on cooperation in localizing the production of weapons by BAE Systems and a framework agreement on cooperation in the repair, supply of spare parts and production of new L119 light guns in Ukraine.

BAE Systems originally manufactured much of the equipment that governments have provided to Ukraine. Working with neighbouring NATO countries, the Company is currently providing support, training and repairs to the Ukrainian armed forces.

The first agreement reinforces BAE Systems’ support to Ukraine. It paves the way for the Company to work alongside Armed Forces Ukraine (AFU) to understand and support its future force structure and capability requirements and to help revitalise Ukraine’s industrial base. The second agreement builds on that support and creates a framework for BAE Systems to work directly with Ukraine to explore potential partners and how it could ultimately facilitate the production of 105mm Light Guns in the country. BAE Systems has set up a local entity ready to support such aspirations.

These agreements come days after Ukraine and Sweden signed a statement of intent to strengthen cooperation in production, operation, training, and servicing of the CV90 platform, which is currently manufactured by BAE Systems’ Hägglunds business in Sweden.

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“Alongside our government customers, we’ve been discussing with President Zelenskyy 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 and paves the way for us to work together to provide more direct support to the Ukrainian armed forces“, said Charles Woodburn, Chief Executive, BAE Systems.

“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 localize the production of advanced weapons“, stated Oleksandr Kamyshin, Ukraine’s Minister for Strategic Industry.

Read also : Rheinmetall sends to Ukraine 14 Leopard 2A4 tanks

In early July, the German company Rheinmetall, one of the largest manufacturers of military equipment and weapons in Europe, announced plans to build a plant in Ukraine for the production of tanks and armored vehicles. The company will own the enterprise together with Ukroboronprom. Production is planned to be created on the basis of Soviet tank factories.

The Russian Foreign Ministry, commenting on plans to open the Rheinmetall plant, said that it would become a legitimate target for the Russian Armed Forces.

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