Lithuania invests $21 million in Ukraine's arms industry, agrees to joint production

Lithuania has already invested 20 million euros ($21 million) in purchasing weapons for Kyiv from Ukrainian producers and will produce arms in cooperation with Ukraine, the Lithuanian Defense Ministry said on March 1.

Ukraine said it aims to raise over $1 billion in defense support this year under the so-called Danish model, which entails foreign partners purchasing weapons and equipment for Kyiv directly from Ukrainian manufacturers.

"The Ukrainian defense industry has incredible potential to become a world-class player due to its high-level expertise, based on direct battlefield experience, the motivation and competence of engineers, and the future-oriented mindset of key industry decision-makers," Lithuanian Defense Minister Dovile Sakaliene said in a statement.

Sakaliene's comments come after she signed a preliminary agreement with Ukraine's Strategic Industries Minister Herman Smetanin and presidential advisor Alexander Kamyshin on a joint production of strategic weapons directly in Lithuania.

"An amount of 20 million euros has already been allocated for this, which will continue to grow. However, we are striving for even closer cooperation - to develop joint Lithuanian and Ukrainian weapons production both in Lithuania and Ukraine," Sakaliene noted.

The statement did not reveal the type of weaponry to be produced under the agreement for security reasons.

Lithuania has been among Ukraine's staunchest supporters since the outbreak of the full-scale war in 2022. The Baltic country has provided 910 million euros ($940 million) in military support and pledged to contribute 0.25% of its GDP in defense assistance on an annual basis.

UK to provide $2.8 billion loan to Ukraine backed by frozen Russian assets

The loan, which is part of the Group of Seven’s (G7) Extraordinary Revenue Acceleration (ERA) credit initiative, was signed amid President Volodymyr Zelensky’s visit to London to meet with U.K. Prime Minister Keir Starmer.

The Kyiv IndependentDmytro Basmat