UK Prime Minister Keir Starmer has announced a substantial £1.6bn ($2bn) agreement to supply a significant number of advanced air defence missiles to Ukraine.
This strategic move is part of the UK’s ongoing commitment to support Ukraine in maintaining a robust defence posture, which simultaneously stimulates the British economy.
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Thales will be tasked with producing more than 5,000 lightweight-multirole missiles (LMM), an endeavour that will result in a tripling of production activities at their Belfast manufacturing hub.
The company is set to expand its workforce with the creation of 200 new positions, while also reinforcing job security for an additional 700 employees at its Belfast facility.
The contract not only marks a historic milestone for Thales in Belfast as their largest ever, but also represents the second major deal with the Ministry of Defence (MoD), succeeding a September 2024 agreement for 650 missiles.
The initial consignment under this previous contract was dispatched ahead of the year-end holidays, and this latest contract ensures that missile deliveries will persist.
Moreover, this project extends economic benefits beyond Thales itself, positively impacting various businesses within its UK supply chain and contributing to increased financial stability for workers across the region.
Ukraine plans to use £3.5bn of export finance to acquire military equipment from UK companies, boosting both nations’ defence industries and supporting further military capabilities.
Ukraine has already deployed LMM missiles in its air defence operations, where they have proven effective.
The new contract, initially valued at £1.16bn with potential extensions up to £500m, will see Thales Northern Ireland working alongside a Ukrainian industry partner responsible for manufacturing launchers and command-and-control vehicles domestically.
The contract has been placed by the MoD’s Defence Equipment & Support (DE&S) agency on behalf of Ukraine and will be financed through a loan backed by UK Export Finance (UKEF).
This move is expected to triple the production of LMMs at the Thales facility and will also benefit the wider supply chain across the UK.
The deal follows the UK Government’s commitment to increase defence spending to 2.5% of GDP by April 2027 and aims to spend 3% of GDP on defence in the subsequent parliament.
The deal is part of the MoD’s Taskforce HIRST’s efforts to deliver “mega projects” for Ukraine.
UK Defence Secretary John Healey said: “Three years since Putin launched his full-scale invasion, we are now at a critical moment for the future of Ukraine and the security of us all in Europe.
“We all want a secure and lasting peace. As today’s meeting has showed, the UK will continue to lead international efforts to support Ukraine in securing a ceasefire and durable peace. And we will not jeopardise the peace by forgetting about the war.
“This new support will help protect Ukraine against drone and missile attacks but it will also help deter further Russian aggression following any end to the fighting.”
In February 2025, the UK Defence Secretary committed £150m military support package for Ukrainian troops, contributing to the UK’s £3bn annual commitment to Ukraine.
With an extra £1.5bn from seized assets, the total UK support for the next financial year will reach £4.5bn.
