British military equipment maker BAE Systems says it has established a local legal entity in Ukraine to "ramp up" its support to the country’s armed forces, prompting an immediate warning from the Kremlin that the enterprise will be a target for attack.
BAE, Britain's biggest defense company, said in a statement late on August 31 that the venture will also "explore" the supply of 105-millimeter light guns to Ukraine as it seeks to understand better the country's needs.
It already supplies a lot of the equipment foreign governments have given Kyiv since Russia launched its full-scale invasion in February 2022, and has also provided support, training and repairs to Ukraine's armed forces.
"Alongside our government customers, we’ve been discussing with President [Volodymyr] Zelenskiy and his team how to best evolve the support that we’re already providing to Ukraine," Charles Woodburn, BAE's chief executive officer, said in a statement.
"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," he added.
The United Kingdom has been a major supplier of support -- both military and financial -- to Ukraine since the invasion.
The Kremlin immediately denounced BAE's move saying such a venture would in no way contribute to an easing of hostilities between the two countries.
"Of course, any facilities for the production of weapons, especially if these weapons fire at us, they become objects of special attention for our military," Kremlin spokesman Dmitry Peskov said during a phone call with reporters on September 1.
BAE has seen its bottom line bolstered by an increase in spending by Western governments who have been supplying Ukraine with weapons.
The company recently announced a 57 percent jump in net profits for the first half of 2023.