£4.5 billion military boost to Ukraine front line to support UK growth and jobs
Source: gov.uk (2025-01-16)

UK’s steadfast support for Ukraine delivers on this Government’s Plan for Change, supporting UK security and growth.

- A Yorkshire company is to begin production of artillery barrels for the first time in almost two decades to support Ukraine, after a £61 million contract was awarded to BAE Systems
- Comes as new air defence system, designed and developed between the UK and Denmark, is deployed to the country
- UK’s steadfast support for Ukraine delivers on this Government’s Plan for Change, supporting UK security and growth
A Yorkshire-based defence company will begin the production of barrels for the first time in almost two decades, as the UK ramps up its military supplies to Ukraine in 2025.

The UK placed a £61 million contract with defence giant BAE Systems to produce the barrel forgings, working with Sheffield Forgemasters. The barrels will be produced in Yorkshire, before being sent to Ukraine for finishing and integration.

This year the UK will give more military support to Ukraine than ever before, with £3 billion already committed for lethal aid, and the first £1.5 billion from a £2.26 billion loan as part of the G7 Extraordinary Revenue Acceleration scheme set to be released for major procurement projects. The loan will be repaid using the extraordinary profits on immobilised Russian sovereign assets.

The £4.5 billion boost for Ukraine in 2025 will see the UK will procure hundreds more air defence systems, drones and essential equipment support to sustain Ukrainian forces on the front line.

With firms across the UK ramping up production to meet Ukraine’s requirements, the funding for Ukraine will directly support the UK deference industry, creating UK jobs, and delivering on this government’s growth agenda and Plan for Change. That includes BAE Systems and Sheffield Forgemasters, who, for the first time in almost two decades, will produce artillery barrels for artillery guns.

It comes after the Prime Minister said that the UK would develop a new training offer with Ukraine, alongside its allies. This will see the UK expand its offer to train members of Ukraine’s armed forces, building on the success of Operation Interflex that trained more than 51,000 Ukrainian recruits in the last two years. Ukrainian officer cadets will be trained at the Royal Military Academy Sandhurst, helping to develop Ukraine’s future military leaders. British officer cadets will also be able to attend training colleges in Ukraine, learning first-hand from Ukrainian Armed Forces about their fight on the battlefield.

He told President Zelenskyy today that nothing is off the table when it comes to the UK’s training offer for Ukraine in 2025, and that the UK was working closely with allies and partners to design and develop a new training offer to put the country is the strongest possible position through 2025.

Prime Minister Keir Starmer said:

Ukraine’s security is our security. We must continue to do everything possible to ensure Ukraine is in the strongest position - that is why the UK is going further than ever before, ramping up military and humanitarian support.

The British people have never wavered in their support for Ukraine, and today, UK firms are stepping up to support Ukraine’s military capabilities. We will always stand shoulder to shoulder with the people of Ukraine.

The Prime Minister has also announced that they UK will deliver a new mobile air defence capability to Ukraine this year.

Gravehawk, a UK designed air defence system, has been rapidly developed to meet Ukrainian needs on the battlefield. The project has been jointly funded by the UK and Denmark.

The innovative system, which is the size of a shipping container, is able to retrofit air-air missiles for ground-based air defence, meaning it can use Ukrainian missiles already in their Armed Forces’ possession.

With Ukraine under constant Russian bombardment, the Gravehawk system will boost Ukraine’s air defences, allowing them to defend their cities, troops and critical infrastructure.

Two prototypes of the air defence capability system were tested in Ukraine in September, and a further 15 will follow this year.

Defence Secretary John Healey said:

We are stepping up UK support for Ukraine throughout 2025. Our plan will increase Ukraine’s military capability, expand our training offer, strengthen defence industrial ties and dial up the pressure on Putin.

This new package of support will help strengthen Ukraine’s position on the battlefield or at any negotiating table.

The UK’s £2.26 billion loan, which forms part of the G7 Extraordinary Revenue Acceleration (ERA) scheme, will be enabled by new legislation which will shortly complete its passage through Parliament. The UK’s loan is earmarked as budgetary support for Ukraine’s military spending, enabling them to invest in key equipment, including British equipment, to support their efforts against Russia.