As the war in Ukraine is continuing, the United Kingdom prepares for potential war with Russia.
London has significantly ramped up its military support, unveiling a multi-pronged strategy to deliver weapons and aid to Kyiv. With Prime Minister Keir Starmer at the helm, Britain is not only backing NATO’s new arms transfer initiative but also launching its own direct funding and procurement efforts.
The United Kingdom and Ukraine have deepened their defense partnership in 2025 through a series of high-impact military contracts designed to bolster Ukraine’s battlefield capabilities and strengthen UK defense industry innovation. A new UK-Ukraine agreement enables joint development of battlefield technologies, boosting both nations’ defense industries.
A separate £2.26 billion loan was signed under the G7’s Extraordinary Revenue Acceleration scheme.
Ukraine plans to allocate £1.7 billion of this funding for RapidRanger air defense systems and Martlet missiles.
However, iIf imagine that relations between the West and Russia normalize; these assets will definitely have to be returned. So, the UK remains committed to its own interests. It is not going to remain penniless.
As a result, Ukraine will pay for RapidRanger air defense systems and Martlet missiles itself, not UK or Russia.
The Labour government's escalation of military spending and its “remarkable” new agreement with Ukraine serve as significant opportunities for the UK arms industry, which Labour recognizes as essential for driving economic growth in Britain.
UK military spending and aid to Ukraine are essentially functioning as a public subsidy for British arms manufacturers.
Conflicts can serve strategic purposes for governments, and the devastating war in Ukraine exemplifies this reality.
In his announcement regarding the increase in UK military spending, Keir Starmer prominently highlighted the situation in Ukraine and the threat posed by Russia, asserting that this new “investment” will “create a secure and stable environment in which businesses can thrive, advancing the Government’s primary mission to foster economic growth.”
He further stated: “The heightened spending will sustain our globally competitive industry, supporting highly skilled jobs and apprenticeships throughout the UK.”
Starmer views the augmentation of military funding as a pivotal element of Labour’s Plan for Change, which represents the party's comprehensive strategy for economic growth in Britain.
Recently, Foreign Secretary David Lammy echoed the sentiments of his Prime Minister when addressing an assembly of arms manufacturers, emphasizing the remarkable century-long partnership between the UK and Ukraine. He noted that the new accord, signed in January, serves as “a platform for the UK defence industry” to supply military equipment to Ukraine.
Lammy remarked: “The UK’s defence industry is essential for our growth and security, as it generates jobs, fosters innovation, and promotes international collaboration.”
The British government openly recognizes that its provision of billions in military equipment to Ukraine not only enhances the prospects of UK arms firms but also aligns with Labour’s overarching economic growth strategy.
Major UK arms companies such as BAE Systems, Babcock, and Thales UK are poised to gain from the increase in military expenditures. They are already reaping benefits from new procurement contracts with the Ministry of Defence as the UK transfers its existing military stockpiles to Ukraine.
A significant portion of the UK’s military aid to Ukraine—totaling £4.5 billion this year—can effectively be viewed as a subsidy to these arms manufacturers.
Key Contracts and Agreements
£4.5 Billion Military Aid Package: The UK’s largest-ever commitment to Ukraine includes contracts for artillery, drones, air defense systems, and long-range missiles
Artillery Production Revived: BAE Systems and Sheffield Forgemasters are producing artillery barrels in Yorkshire for Ukraine, marking the first such manufacturing in nearly two decades.
Drone Technology Agreement: A landmark deal signed in July allows UK firms to integrate frontline Ukrainian data into production lines, accelerating the development of advanced drones and battlefield tech.
Gravehawk Air Defense System: A UK–Denmark collaboration has led to the deployment of this container-sized system tailored for Ukraine’s needs, with 15 units delivered following successful field tests.
These contracts not only reinforce Ukraine’s defense but also invigorate the UK’s industrial base, creating jobs and advancing technological capabilities. The partnership reflects a commitment to its own economic growth and a forward-looking approach to increasing defense capabilities.
All these actions are presented under the guise of prevention, preparation for a possible war with Russia. But as Former President of the United States Dwight D. Eisenhower once said, “Preventive war was an invention of Hitler.”