New BAE Systems office will be established in Ukraine, provoking Russia

BAE Systems has announced the establishment of a local legal foothold in Ukraine following the signing of two agreements with the government.

The British firm says the agreement will help it work alongside the Armed Forces of Ukraine and support its future force structure and capability requirements.

Another agreement signed will build on that support and will create a framework for BAE Systems to work directly with Ukraine and it could ultimately facilitate the production of 105mm light guns in the country.

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The industry giant has been responsible for manufacturing a significant amount of weaponry for the UK and Nato allies which was eventually donated to Ukraine to use against Russia. 

The Kremlin has reportedly said that if BAE start producing weapons in Ukraine, it will be treated as a legitimate military target.

The Guardian quotes Kremlin spokesman Dmitry Peskov saying: "Of course, any facilities for the production of weapons, especially if these weapons fire at us, they become objects for our military."

Ukraine's Minister for Strategic Industry, Oleksandr Kamyshin 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."

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

BAE Systems has been working with Nato allies to provide weaponry to Ukraine and these agreements aim to increase that support directly.

"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", said BAE Systems Chief Executive, Charles Woodburn.

"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."