World

Ukrainian technologies can transform the UK defense sector

According to the latest government data, the UK has already allocated £7.8 billion in military support, but the country could benefit even more from expanding cooperation with Ukraine in the field of defense technology. Ukrainian companies with deep experience in innovation can be a key factor in increasing the competitiveness of the British defense industry. This opinion was shared by Sergey Tokarev, co-founder and general partner of Roosh and Roosh Ventures, in his column for The Standard, Komersant Ukrainskyi reports .

“High-tech talent, especially in artificial intelligence and machine learning, is the most favored area to drive innovation in the UK, and Ukraine has a lot of such talent.”

Today, Ukraine ranks second among Central and Eastern European countries in terms of the number of AI companies, with 34 new businesses launched over the past four years.

European investors, who previously refrained from backing defense companies due to concerns about compliance with ESG standards (a set of criteria that assesses how a company cares about the environment, society, and its own governance), are now increasingly looking at dual-use technologies. Such developments include satellite navigation, night vision equipment, and thermal imaging systems.

These technologies not only help the military in low-visibility conditions, but also find applications in the civilian sector, such as in natural history photography, medical imaging, and firefighting. The ability to dual-use technologies increases investor confidence in their long-term investments and also allows for quick results on the battlefield.

Despite the potential, British investors have been slow to respond to this trend. According to the London Stock Exchange, last year, British funds reduced their investments in defense companies such as BAE Systems by 9% compared to the beginning of the previous year. In response, British ministers have called on banks to support the industry more actively.

“The main way for London to catch up in this emerging market is to deepen and expand its existing ties with Ukraine. In addition to military assistance, trade and technology agreements, such as the UK-Ukraine TechBridge program, lay the foundation for further cooperation between the two tech sectors,” says Tokarev.

According to a study initiated by AI House and Roosh, the number of artificial intelligence and machine learning specialists in Ukraine has increased fivefold over the past decade, reaching 5,200 as of January 2024.