Prime Minister Rishi Sunak announced Tuesday that Britain will invest £4.2 billion ($4.9 billion) on five new frigates from defence company BAE Systems to strengthen security “in the face of heightened Russian threats.”
Sunak stated in a Downing Street statement that “the UK and allies are taking actions to reinforce their security in the face of heightened Russian threats.”
As we provide the Ukrainian people with the assistance they require, we are also utilising the breadth and depth of UK expertise to safeguard ourselves and our friends, including by constructing the next generation of British warships.
The funding represents the next stage of a programme under which three ships are currently being built. All eight frigates are planned to be finished by the middle of the 2030s.
Five additional City Class Type 26 frigates were ordered, according to a different announcement from BAE Systems.
According to the British defence industry behemoth, this would support 4,000 jobs at the corporation and throughout the larger supply chain.
According to BAE Chief Executive Charles Woodburn, “This contract secures a crucial UK industry and allows us to build on our long heritage of shipbuilding as we continue to deliver cutting-edge technology to the Royal Navy into the next decade.”
The declaration was made on Tuesday as Sunak delivered a significant address at the G20 conference in Bali, Indonesia, denouncing Russia’s “barbaric” invasion of Ukraine.
Instead of travelling, Russian President Vladimir Putin sent his foreign minister.
In the meantime, BAE Systems has also increased its earnings forecast, citing strong orders as a result of the “elevated threat environment” following the situation in Ukraine.
In late morning trades on London’s quiet stock exchange, the group’s share price increased by more than three percent.
The geopolitical tension of today benefits BAE, according to analyst Olly Anibaba of research firm Third Bridge.
“Over the next two to five years, according to our analysts, defence budgets in the US and Europe will continue to rise. Many European nations need to wake up as a result of the Russia-Ukraine war.”
Instead of travelling, Russian President Vladimir Putin sent his foreign minister.
In the meantime, BAE Systems has also increased its earnings forecast, citing strong orders as a result of the “elevated threat environment” following the situation in Ukraine.
In late morning trades on London’s quiet stock exchange, the group’s share price increased by more than three percent.
The geopolitical tension of today benefits BAE, according to analyst Olly Anibaba of research firm Third Bridge.
“Over the next two to five years, according to our analysts, defence budgets in the US and Europe will continue to rise. Many European nations need to wake up as a result of the Russia-Ukraine war.”
