Babcock International PLC (LSE:BAB) has won a £50mln contract from the UK Ministry of Defence to support "urgent operational requirements" for Ukraine’s army as it mounts a counter-offensive following Russia's invasion.
The FTSE 250-listed military contractor will provide training and repairs for the Challenger 2 tanks and other armoured vehicles provided by the UK to the Ukrainian military, as well as supporting the supply chain and providing spare parts.
Prime Minister Rishi Sunak confirmed earlier this year that 14 tanks would be supplied to Ukraine, with crews given training in the UK shortly after and the vehicles have since been spotted on the Ukrainian front line.
The contract awarded to Babcock, which was part of a tripartite agreement signed with the Ministry of Defence of Ukraine and the UK government in June 2021, is for an initial 12 months but includes an option to extend.
Major General Anna-Lee Reilly, director of the MoD's Defence Equipment & Support arm, said: “With the conflict in Ukraine now in its second year, it is critical that the MoD continues to assist the Ukrainians with the sustainment of their battle-winning equipment. This is even more important as the Ukrainian counter offensive begins.
“Our defence industry has a critical role to play in sustaining the equipment provided by the United Kingdom. This contract draws together the strengths of prime contractor Babcock, with the vehicle manufacturers – Rheinmetall, BAE Systems and RBSL – to deliver an agile, scalable, and balanced package of support that will continue to assist the Armed Forces of Ukraine (AFU).”
Babcock also supports the British Army with maintenance, repair and overhaul (MRO) of military land vehicles and equipment vehicles in the UK and those deployed around the world.
The MoD has described the Challenger 2 vehicles as a "step change in capability" for Ukraine's armed forces, with the US also supplying Abrams tanks, and Germany and other European allies providing Leopard 2 tanks.