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    Finance

    Ukraine may form joint ventures with allies to boost defences against ballistic missiles

    Published by Global Banking & Finance Review®

    Posted on February 27, 2026

    2 min read

    Last updated: February 27, 2026

    The image shows the aftermath of an Israeli airstrike in Gaza that claimed the lives of Al Jazeera journalists, including Anas Al Sharif. This tragic event highlights the ongoing conflict and its impact on press freedom.
    Scene depicting the aftermath of an Israeli airstrike that killed Al Jazeera journalists in Gaza - Global Banking & Finance Review
    Tags:FinanceBankingMarkets

    Quick Summary

    Ukraine is weighing joint ventures with allies to build counter-ballistic air defences as Patriot PAC-3 interceptor stocks run critically low. The push reflects both battlefield urgency and an industry reality: PAC-3 output is rising, but demand from Ukraine and other theaters continues to strain su

    Table of Contents

    • Ukraine weighs consortia with allies to bolster air defences and Patriot munitions
    • Consortia plans to counter ballistic missile threats
    • Patriot systems’ role in Ukraine’s air defence
    • PAC-3 missile stockpiles running low
    • Domestic production potential for counter-ballistic systems
    • Allied delays and ammunition shortages highlighted by Zelenskiy
    • Discussions with Zelenskiy and uncertainty over allied participation
    • Complexity and timeline for developing independent capabilities
    • Source and credits

    Ukraine considers joint ventures to strengthen Patriot ballistic defence

    Ukraine weighs consortia with allies to bolster air defences and Patriot munitions

    Consortia plans to counter ballistic missile threats

    KYIV, Feb 27 (Reuters) - Ukraine is considering forming consortia with its allies to build air defences capable of downing ballistic missiles and overcome a critical deficit of munitions for U.S.-made Patriot systems, its defence minister said.

    Patriot systems’ role in Ukraine’s air defence

    Patriot systems have been an important part of Ukraine's efforts to defend its skies against Russian ballistic missiles, which fly faster than the speed of sound and cannot be intercepted by Ukraine's other air defence systems.

    PAC-3 missile stockpiles running low

    Stocks of the Patriot system's PAC-3 missiles have been running "critically" low, Defence Minister Mykhailo Fedorov said.

    Domestic production potential for counter-ballistic systems

    "Ukraine has significant potential to independently produce counter-ballistic systems and missiles," Fedorov told reporters this week, adding that air defences had been his main focus since he took office in mid-January.

    Allied delays and ammunition shortages highlighted by Zelenskiy

    President Volodymyr Zelenskiy has repeatedly criticised delays by Ukraine's allies in providing Patriot missiles and other air defences since Russia's 2022 invasion, and said that at one point in January several systems had run out of ammunition.

    Discussions with Zelenskiy and uncertainty over allied participation

    Fedorov said he had discussed the idea of creating joint air defence ventures with Zelenskiy. Reuters could not determine whether discussions have already taken place with allies or which of its allies Kyiv has in mind.

    Complexity and timeline for developing independent capabilities

    "This requires a dedicated project - the mathematics is complex and requires time. But Ukraine must develop its own capabilities," Fedorov said.

    Source and credits

    (Reporting by Max Hunder, Editing by Daniel Flynn and Timothy Heritage)

    Key Takeaways

    • •Patriot PAC-3 is a hit-to-kill interceptor designed to defeat tactical ballistic missiles, making it a uniquely valuable layer in Ukraine’s air-defence mix—and a natural focus for any co-production or JV plan. (mda.mil)
    • •Supply is the bottleneck: Lockheed Martin says PAC-3 MSE production exceeded 500 missiles in 2024, is tracking above 600 in 2025, and is ramping toward 650 per year by 2027—helpful, but not immediate relief for ‘critical’ wartime consumption. (lockheedmartin.com)
    • •Allies have been patching Ukraine’s Patriot coverage via donations and transfers (including U.S. and Romania decisions), but these moves depend on backfills and national stockpile constraints—supporting Kyiv’s argument for longer-term joint industrial capacity. (apnews.com)

    References

    • MDA - PATRIOT Advanced Capability-3 (PAC-3)
    • Lockheed Martin's PAC-3 MSE Achieves Record Production Year | Lockheed Martin
    • US will send Ukraine another Patriot missile system after Kyiv's desperate calls for air defenses

    Frequently Asked Questions about Ukraine may form joint ventures with allies to boost defences against ballistic missiles

    1Why is Ukraine considering joint ventures with allies on air defence?

    To build air defences capable of downing ballistic missiles and to overcome a critical deficit of munitions for U.S.-made Patriot systems.

    2What did Ukraine's defence minister say about Patriot PAC-3 missile stocks?

    Defence Minister Mykhailo Fedorov said stocks of the Patriot system's PAC-3 missiles have been running critically low.

    3Why are Patriot systems important for Ukraine's air defence?

    Patriot systems help defend against Russian ballistic missiles, which fly faster than the speed of sound and cannot be intercepted by Ukraine's other air defence systems.

    4What capability does Ukraine say it has regarding counter-ballistic systems?

    Fedorov said Ukraine has significant potential to independently produce counter-ballistic systems and missiles.

    5Have talks with allies on joint air defence ventures been confirmed?

    Reuters could not determine whether discussions have already taken place with allies or which allies Kyiv has in mind, though Fedorov said he discussed the idea with President Volodymyr Zelenskiy.

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