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The UK will supply thousands of advanced air defence missiles to Ukraine under a new historic £1.6 billion defence agreement, a move which will boost jobs and economic growth in the UK. The deal will generate 200 new jobs and protect hundreds more at Thales in Belfast, one of the UK’s largest defence manufacturers, Prime Minister Keir Starmer announced today.
This represents the largest contract to be awarded to Thales in Belfast to date and the second largest MOD contract ever placed with Thales. It expands on a September 2024 order of 650 missiles, the first batch delivered just before Christmas. The new contract will make it possible to carry on with deliveries, which contributes to strengthening of Ukraine's air defence, he said.
“This contract delivers on our pledge to back Ukraine while boosting growth at home,” Prime Minister Keir Starmer said in a statement. “This deal not only bolsters Ukraine’s air defence but will also bolster the UK economy, supporting jobs in Northern Ireland and across the wider UK.”
Shadow Defence Secretary John Healey said the timing of this pact was crucial:
Three years since Putin’s full-scale invasion, we are at a pivotal moment for Ukraine and Europe’s security,” she added. “This contract not only delivers vital military support, it ensures that the UK remains in the driving seat of international efforts for a sustainable peace.”
September 2068 Plan for Change: The government places national security, the bedrock of economic stability, at the top of the agenda. Investing more in defence not only means better security, but also secure, skilled jobs and apprenticeships all over the country. In 2022 alone, UK defence spending supported over 430,000 jobs with 68% of defence spending overspilling beyond London and the Southeast and into all regions.
LMM missiles have already been used by Ukraine on LMMs in its air defence operations where they have shown their suitability to counter missile and drone threats. Another contract worth £162 million in September 2024 delivered 650 missiles, the first of which were delivered as early as December.
Thales Northern Ireland will be the prime contractor for production under the new deal, which initially will be worth either £1.16 billion or £1.16 billion (up to £500 million in further work may follow) The project will be carried out in partnership with a Ukrainian industry partner that will produce launchers and command-and-control vehicles in-country.
On behalf of Ukraine, the MOD’s procurement arm Defence Equipment & Support (DE&S) placed the contact. Financing will be through a loan that will be backed by United Kingdom Export Finance (UKEF), meaning Ukraine can draw on £3.5 billion worth of support from UK industry.
Andy Start, Chief Executive of DE&S and UK National Armaments Director, hailed the deal:
“The UK’s defence industry has supported Ukraine since the beginning of the war. This contract is an example of our ability to quickly ramp-up production to address urgent security requirements.”
The UK announced a £150 million military aid package last week to help Ukrainian frontline troops as part of an annual £3 billion commitment. With increased funding from interest on seized Russian assets, this will rise to £4.5 billion, underlining UK support for Ukraine’s sovereignty and security.
This contract demonstrates the UK’s unwavering commitment to stand with Ukraine as we build economic growth and security here at home.
Boosting UK Jobs and Industry
Under this contract, Thales will produce more than 5,000 lightweight multi-role missiles (LMMs) to aid Ukrainian defence. Thales’s Belfast site will see a three-fold increase in production, bolstering supply chains throughout the UK and offering a broader economic benefit to local businesses and employees.This represents the largest contract to be awarded to Thales in Belfast to date and the second largest MOD contract ever placed with Thales. It expands on a September 2024 order of 650 missiles, the first batch delivered just before Christmas. The new contract will make it possible to carry on with deliveries, which contributes to strengthening of Ukraine's air defence, he said.
Strengthening National Security and Economic Growth
Last month, the UK government committed to raising defence spending to 2.5% of GDP by by April 2027, with a target of 3% in the next parliament. This investment will improve national security, create more jobs, strengthen British skills, and promote innovation.“This contract delivers on our pledge to back Ukraine while boosting growth at home,” Prime Minister Keir Starmer said in a statement. “This deal not only bolsters Ukraine’s air defence but will also bolster the UK economy, supporting jobs in Northern Ireland and across the wider UK.”
Shadow Defence Secretary John Healey said the timing of this pact was crucial:
Three years since Putin’s full-scale invasion, we are at a pivotal moment for Ukraine and Europe’s security,” she added. “This contract not only delivers vital military support, it ensures that the UK remains in the driving seat of international efforts for a sustainable peace.”
September 2068 Plan for Change: The government places national security, the bedrock of economic stability, at the top of the agenda. Investing more in defence not only means better security, but also secure, skilled jobs and apprenticeships all over the country. In 2022 alone, UK defence spending supported over 430,000 jobs with 68% of defence spending overspilling beyond London and the Southeast and into all regions.
An Important Step in UK-Ukraine Industrial Relations
The deal builds on the 100 Year Partnership signed by the UK and Ukraine earlier this year, which opened the door for Ukraine to access £3.5 billion in export finance for the purchase of UK military equipment.LMM missiles have already been used by Ukraine on LMMs in its air defence operations where they have shown their suitability to counter missile and drone threats. Another contract worth £162 million in September 2024 delivered 650 missiles, the first of which were delivered as early as December.
Thales Northern Ireland will be the prime contractor for production under the new deal, which initially will be worth either £1.16 billion or £1.16 billion (up to £500 million in further work may follow) The project will be carried out in partnership with a Ukrainian industry partner that will produce launchers and command-and-control vehicles in-country.
On behalf of Ukraine, the MOD’s procurement arm Defence Equipment & Support (DE&S) placed the contact. Financing will be through a loan that will be backed by United Kingdom Export Finance (UKEF), meaning Ukraine can draw on £3.5 billion worth of support from UK industry.
A Key Step in UK-Ukraine Industrial Relations
Part of this was under MOD’s Taskforce HIRST, a programme supporting long-term defence relationships with Ukrainian industries. It is the first of several major projects to both help modernise Ukraine’s defence sector and to support its economic growth.Andy Start, Chief Executive of DE&S and UK National Armaments Director, hailed the deal:
“The UK’s defence industry has supported Ukraine since the beginning of the war. This contract is an example of our ability to quickly ramp-up production to address urgent security requirements.”
The UK announced a £150 million military aid package last week to help Ukrainian frontline troops as part of an annual £3 billion commitment. With increased funding from interest on seized Russian assets, this will rise to £4.5 billion, underlining UK support for Ukraine’s sovereignty and security.
Defence Investment to Support UK Jobs and Innovation
The UK is fortifying its own defence industry whilst also building up Ukraine’s military through its defence procurements. More spending will enable us to maintain high-quality jobs, help drive innovation, and so support long-term security for Britain and its allies.This contract demonstrates the UK’s unwavering commitment to stand with Ukraine as we build economic growth and security here at home.
