Agreements worth €800 million with companies in Denmark, Finland, and Latvia, along with the launch of a Ukrainian defense production facility in the United Kingdom, signal the systemic integration of Ukraine’s defense sector into European industrial supply chains.
€800 Million in Agreements: A Shift Toward Joint Production
According to the Ukrainian Council of Gunsmiths, four Ukrainian defense companies have concluded a package of partnerships with enterprises in Denmark, Finland, and Latvia totaling approximately €800 million.
The objective of these agreements is not merely product exports, but the creation of joint manufacturing facilities and the integration of Ukrainian technologies into EU industrial value chains.
Key Partnerships
Culver Aerospace (Ukraine) – Copenhagen Global A/S (Denmark)
A five-year joint UAV production program focused on:
- long-range strike drones (up to 2,500 km);
- medium-range systems (up to 400 km).
TENCOR (Ukraine) – INSTA (Finland)
Cooperation on the TerMIT ground robotic platform and the production of robotic systems for Ukraine’s defense needs.
Remtecnology (Ukraine) – New Paakkola Oy (Finland)
Establishment of a joint venture in Finland to manufacture the LEGIT tactical ground robotic platform.
The plan предусматривает 1,500 units for the Ukrainian military with further scaling.
Terminal Autonomy Ukraine – SIA Baltic Forces (Latvia)
A framework agreement on joint work in unmanned systems and missile solutions, including cruise missiles and air defense systems (currently without financial commitments).
Why This Is Strategically Important
According to Deputy Minister of Defense Hanna Hvozdyar, the production capacity of Ukraine’s defense industry has increased fiftyfold since the start of the full-scale war and is now estimated at approximately $50 billion.
Ukrainian manufacturers already supply more than half of the Armed Forces’ weapons needs.
The next stage involves moving from national-scale expansion to international industrial cooperation.
Joint ventures provide:
- access to EU production infrastructure;
- financing through European defense funds;
- reduced logistics risks;
- easier access to NATO markets.
Ukrainian Defense Facility in the United Kingdom
A further sign of industrial integration is the launch of the first Ukrainian defense manufacturing facility in the United Kingdom.
The start of operations at the production site of Ukrspecsystems was announced by Ukraine’s Ambassador to the UK, Valerii Zaluzhnyi.
The company is known for producing Shark reconnaissance drones.
Operating model:
- Engineering and R&D remain based in Ukraine.
- The UK site serves as an additional production hub.
- Manufacturing is integrated into the UK defense sector.
The relocation of part of the production was driven by security risks stemming from missile strikes on Ukrainian infrastructure.
The project:
- ensures production continuity;
- provides access to the British market;
- creates jobs in the UK;
- gives partners access to technologies validated in real combat conditions.
Ukrspecsystems has been operating since 2014 and specializes in:
- Shark reconnaissance UAVs;
- the PD-2 vertical take-off system;
- the compact Mins Shark;
- gyro-stabilized electro-optical systems;
- antennas, catapults, and ground control stations;
- component supply through its UAS Components division.
Formation of a European Defense Cluster with a Ukrainian Technological Base
Taken together, these developments indicate:
- Ukraine is moving from receiving assistance to co-producing defense solutions;
- Ukrainian companies are becoming part of the EU defense supply chain;
- European partners gain access to technologies proven in real wartime conditions;
- a new model is emerging — distributed production with R&D in Ukraine and industrial-scale manufacturing in the EU and the UK.
For European security, this signals the formation of a new industrial core, where Ukrainian experience and technologies become a key driver of defense industry modernization.
