The UK has signed a new technology sharing agreement with Ukraine that will see British and Ukrainian firms jointly develop and manufacture advanced military equipment, starting with a new air defence interceptor drone. The initiative is designed to support Ukraine’s defence while creating jobs and growth across the UK supply chain.
The first joint programme, Project OCTOPUS, will produce thousands of interceptor drones per month in the UK. Designed in Ukraine with support from British scientists and engineers, the drones have already proved highly effective against Russian Shahed one-way attack drones. At a fraction of the cost of traditional air defence missiles, they provide a scalable and affordable solution to meet urgent operational demand.
For UK industry, the partnership opens up access to Ukrainian intellectual property and battlefield-proven designs, offering supply chain opportunities at scale. Prime contractors will lead on production, but subcontracting is expected to reach deep into the UK defence ecosystem, covering electronics, composites, propulsion systems, testing, logistics, and maintenance. SMEs and specialist suppliers in particular will be well placed to benefit from the rapid increase in manufacturing capacity required to deliver drones at wartime pace.
The agreement follows Defence Secretary John Healey’s visit to Kyiv to expand the UK-Ukraine industrial partnership and comes alongside the launch of the government’s Defence Industrial Strategy. The strategy includes £250 million for new Defence Growth Deals across the UK and a £182 million skills package to train thousands of workers through new defence technical excellence colleges. Together, these measures are designed to ensure the supply chain can meet rising demand while strengthening regional economies.
Prime Minister Keir Starmer said the partnership represents a landmark moment, combining British industrial capacity with Ukrainian innovation. He stressed that supporting Ukraine is also creating British jobs and reinforcing national security. Defence Secretary Healey added that the collaboration allows UK firms to innovate at pace and demonstrate the strength of defence as a driver of growth.
The government has already committed £4.5 billion in military support to Ukraine this year, including a £1.6 billion deal to provide 5,000 air defence missiles, supporting 900 jobs in the UK. Drone production is also being scaled up, with investment set to increase the supply from 10,000 in 2024 to 100,000 in 2025.
For UK suppliers, the industrial partnership with Ukraine signals significant long-term opportunity. The demand for high-volume, low-cost systems such as interceptor drones will require sustained production, creating new entry points into the defence supply chain while reinforcing Britain’s position as one of the world’s leading defence exporters.
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Post written by: Vicky Maggiani
Vicky has worked in media for over 25 years and has a wealth of experience in editing and creating copy for a variety of sectors.
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