By Mark Episkopos, Managing Editor, Center for Military Modernization
Ukraine has signed memoranda of cooperation and understanding with the Arizona Defense and Industry Coalition (AZDIC) and the Utah Aerospace and Defense Association (UADA), reflecting Kyiv’s effort to deepen and diversify its ties with the US defense industry as Russia’s invasion of Ukraine grinds into its nineteenth month.
Ukrainian President Volodymyr Zelenskyy attended the signing, which took place at the Ukrainian Embassy in the United States.
“The document enshrines cooperation in the implementation of projects in the defense industry and reconstruction. The GDIA is to ensure the establishment of ties and development of cooperation between Ukraine and American defense companies interested in locating their production facilities in Ukraine,” read press statement issued by Zelenskyy’s office.
“This is a historic milestone in Utah’s relationship with Ukraine and a major opportunity to leverage critical industries for a more peaceful and prosperous world,” said UADA CEO Aaron Starks. “Our industry leaders in Utah stand with Ukrainians and we will do whatever we can to help them win the war and build a smart, robust economy.”
The memorandum with AZDIC is geared toward facilitating “the development of joint ventures and production opportunities.” It is not immediately clear whether this cooperation will involve US companies setting up production facilities on Ukrainian territory and, if so, what the scope of these enterprises will be. There have been reconstruction initiatives to organize the flow of private capital into Ukraine after active hostilities with Russia cease; any joint venture on Ukrainian soil while the fighting is still ongoing carries additional risks that must be weighed by prospective investors.
“With AZDIC’s unmatched network of over 1,200 defense contractors and non-defense companies in Arizona, we knew we were in a unique position to help find actionable solutions for Ukraine,” said AZDIC President Lynndy Smith in a statement. “We appreciate Ukraine’s enduring partnership, and we look forward to supporting their cause through Arizona’s defense connections.”
The timeframe for any concrete investments stemming from the memoranda signed last week remains uncertain. “We have worked diligently to identify companies and universities in Arizona that want to assist our partners in Ukraine. Clearly we have demonstrated that Arizona strongly supports Ukraine and has a strong desire to begin this work immediately,” said Rick Stilgenbauer, AZDIC Advisory Board Member. The AZDIC, which last traveled to Ukraine in June, is planning a second delegation to Kyiv this Fall.
By deepening its ties with major regional US players, Ukraine can potentially mitigate some of the risks posed by the vicissitudes of congressional politics. Federal channels of military aid will continue to be Ukraine’s most important lifeline for the foreseeable future, but Kyiv stands to benefit over the long-term from diversifying its security assistance portfolio to the greatest possible degree with the help of private and local US actors. Additionally, Kyiv’s strategy of building mutually beneficial relationships with key local industry players can strengthen its overall position in Congress by providing elected politicians in Washington, including members of both the house and the senate, with direct incentives to support the continued flow of security assistance to Ukraine.
Mark Episkopos is the new Managing Editor of the Center for Military Modernization. Episkopos is a journalist, researcher, and analyst writing on national security and international relations issues. He is also a Ph.D. candidate in history at American University.
