UK's BAE Sets up Ukraine Arms Facility

Facts

• BAE Systems, a British arms maker, said on Thursday it had set up a local entity in Ukraine and signed deals with the government to help Kyiv increase its supply of weapons and equipment.¹
• According to BAE Systems, the move will enable it to work directly with Kyiv to explore potential partners and produce 105mm light artillery guns in Ukraine.²
• As the UK's leading defense contractor, BAE Systems has supplied much of the military equipment Britain and other governments provided to Ukraine amid the war with Russia.³
• BAE, Europe's biggest defense contractor, is already providing training and repair services to Ukraine's military.⁴
• Meanwhile, Moscow warned that its forces may target BAE's facility if it starts producing weapons intended to attack Russia.⁵
• The share price of BAE, which employs 93K people in about 40 countries, has increased by more than 75% since February 2022. Last year, its sales were more than £23B ($29B), and it made almost £2.5B ($3.2B) in profits.⁶

Sources: ¹Al Jazeera, ²The Guardian, ³Reuters, ⁴BBC News, ⁵RadioFreeEurope/RadioLiberty, and ⁶AOL.

Narratives

• Pro-establishment narrative, as provided by The Defense Post. If Ukraine is to win the war against Russia, it needs its own weapons production. Opening up BAE Systems repair and production facilities for various types of products will not only benefit Ukraine's war efforts but also further position the company on the global market.
• Establishment-critical narrative, as provided by TASS. The establishment of arms production in Ukraine will only escalate regional tensions. If these weapons are used against Russian troops, these production sites would become a focus of special attention for the Russian military.

Predictions