A contract valued at GBP 1.6 billion has been established for the provision of 5,000 advanced air defence missiles to Ukraine. The agreement, revealed by the UK Prime Minister on 2 March, is expected to generate 200 new employment opportunities and support hundreds more at one of the UK’s prominent defence manufacturers.
The deal is expected to significantly enhance the UK economy and sustain 700 jobs at Thales in Belfast, which will produce over 5,000 lightweight multirole missiles (LMM) for Ukraine’s defence. The production of LMMs at Thales’s facility will increase threefold, benefiting various companies within the Thales Supply Chain throughout the UK.
The contract was awarded by the UK’s Defence Equipment & Support (DE&S) on behalf of the Ukrainian Government, financed by a loan guaranteed by United Kingdom Export Finance (UKEF), following a prior agreement that allows Ukraine to access GBP 3.5 billion in support from UKEF for expenditures with UK industry. This contract represents the largest ever awarded to Thales in Belfast and the second largest from the UK Ministry of Defence to the company, building on a previous contract signed in September 2024 for 650 missiles.
The initial batch of missiles was delivered before Christmas, and this new agreement will ensure the continuation of deliveries. This development follows the Prime Minister’s announcement of the Government’s commitment to increase defence spending to 2.5% of GDP by April 2027, with an ambition to reach 3% of GDP on defence in the next parliamentary term, ensuring the safety and security of Britain for future generations. This investment presents an opportunity to convert defence expenditure into British growth, jobs, skills, and innovation.
The agreement aligns with the Government’s pledge in its Plan for Change to enhance the quality of life for individuals across the UK by stimulating economic growth. By increasing defence spending, we will secure the national security that is essential for economic development and create new jobs, skills, and opportunities nationwide.
UK Prime Minister Sir Keir Starmer said: “My support for Ukraine is unwavering. I am determined to find a way forward that brings an end to Russia’s illegal war and guarantees Ukraine a lasting peace based on sovereignty and security.”
“I am also clear that national security is economic security. As well as levelling up Ukraine’s air defence, this loan will make working people here in the UK better off, boosting our economy and supporting jobs in Northern Ireland and beyond.”
“By doubling down on our support, working closely with key partners, and ensuring Ukraine has a strong voice at the table, I believe we can achieve a strong, lasting deal that delivers a permanent peace in Ukraine.”
Major General Anna-Lee Reilly CB, FREng, Director Strategic Capability, Engagement and Operations, DE&S & Director HIRST, said: “The signing of the Task Force HIRST LMM Mega Contract signifies a step change in the scale of the support being provided by UK for Ukraine. This UK Export Finance enabled contract gives Ukraine the vital equipment that it needs, and significantly increases the UK’s production of short-range air defence missiles.”
“This is a perfect example of the work of Task Force HIRST, bringing together the best of UK and Ukrainian Defence industry to rapidly provide the largescale support that Ukraine requires in its hour of need.”
Defence Secretary John Healey MP said: “Three years since Putin launched his full-scale invasion, we are now at a critical moment for the future of Ukraine and the security of us all in Europe.”
“We all want a secure and lasting peace. As today’s meeting has showed, the UK will continue to lead international efforts to support Ukraine in securing a ceasefire and durable peace. And we will not jeopardise the peace by forgetting about the war.”
“This new support will help protect Ukraine against drone and missile attacks but it will also help deter further Russian aggression following any end to the fighting.”
“This new deal delivers on the UK’s ironclad commitment to step up military support for Ukraine, whilst boosting jobs and growth at home.”
Lightweight Multi-role Missile (LMM)
The Lightweight Multi-role Missile (LMM) is a compact, precision-guided missile designed for multiple roles. It is engineered to be launched from various tactical platforms across land, air, and maritime domains, effectively addressing a broad spectrum of conventional and asymmetric threats, such as armoured personnel carriers (APCs), fast in-shore attack craft (FIAC), and unmanned aerial systems (UASs).
The missile features a precision laser beam riding guidance system, which minimizes collateral damage, making it particularly suitable for urban operations. With a speed of Mach 1.5 and a range exceeding 6 kilometres, the LMM is equipped with a triple-effect warhead and a proximity fuse, establishing it as a formidable and proven asset in combat scenarios.
LMM is capable of being utilized across a diverse array of adaptable platforms, ranging from standalone units to portable systems, as well as being integrated into fire control systems like RAPIDRanger. This integration enhances close-range air defence capabilities, safeguarding against both surface and aerial threats. The triple effect warhead of the LMM ensures remarkable lethality against a variety of conventional and asymmetric threats, including armoured personnel carriers and both wheeled and tracked vehicles.
In maritime scenarios, conventional missiles face significant challenges when targeting Fast Inshore Attack Craft (FIAC) due to their high mobility, minimal radar signature, and the presence of complex background clutter. Thales’ innovative laser beam riding guidance system allows the LMM to be precisely and reliably directed in these challenging conditions, effectively neutralizing FIAC threats at the extended ranges necessary to defend vessels against swarm tactics.
