Amid the Russian invasion that has made the country into a war zone since February 2022, Britain’s largest defence contractor BAE Systems has recently set up a business in Ukraine. It has agreed to supply arms to Ukraine’s military and possibly set up local production facilities in the future.
Unlike other companies and business sectors, BAE and the global defence sector are major beneficiaries of Russia’s invasion of Ukraine. BAE reportedly won a record £21.1 billion of new orders in the first six months of 2023 alone. The UK government has struck a £280 million deal with BAE to buy arms to donate to Ukraine’s war effort.
But BAE’s entry into Ukraine presents both opportunities and risks for the company, as well as the Ukrainian government.
