Proactive Investors - BAE Systems (LON:BAES) has established a business in Ukraine to help the Kyiv government establish its own weapons-production infrastructure.
There are no plans for BAE to set up a facility, according to reports today, but the UK group will help the Ukraine government find partners and set up its own artillery capability.
Britain has been providing substantial amounts of ordnance including shells and missiles to the Kyiv government since the war with Russia started, with a lot of it coming from BAE.
The FTSE 100 group also provides training and repair services to Ukraine's military.
In a tweet on X, formerly known as Twitter, Ukraine president Volodymyr Zelensky said it was a priority for the country to develop its own weapons-making capability.
Charles Woodburn, BAE’s chief executive, added: "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,"
In May, BAE said it was working with the government to open an office in Ukraine.
BAE has seen its share price jump by more than 75% since the start of the war with Russia as countries in the West have started to expand defence spending to bolster their military capability.