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What is required for US defense companies to operate in Ukraine?

American defense giant Northrop Grumman will launch ammunition production in Ukraine.

Slovakia has increased its arms exports to Ukraine but has plans to convince Ukraine to maintain transit of Russian gas after 2024.

Several US defense companies are considering starting joint production with Ukrainian enterprises inside Ukraine. The Pentagon is actively encouraging US defense contractors to engage in this cooperation, but these companies have been much slower to conclude agreements with Ukraine than European ones.

They are concerned about the safety of doing business, long-term economic feasibility, corruption, and the problem of “insurance against political risks” has also mentioned.

At the same time, Northrop Grumman’s statement about their intention to organize ammunition production in Ukraine has acted as a kind of incentive for other US defense companies to think about the possibility of working with Ukraine in a similar format.

A representative from the US State Department noted that US defense contractors in Ukraine should tread carefully and start with maintenance and production of components before moving on to “more advanced things.”

 

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