Ukraine expands defence ambitions with new air shield project

Ukraine’s defence manufacturer Fire Point is in talks with several European firms to jointly develop a new air defence system aimed at providing a lower-cost alternative to existing Western platforms, according to Reuters. The proposed system, which the company hopes to launch as early as next year, is designed to significantly reduce the cost of intercepting ballistic missiles — targeting a price below $1 million per interception.

Push for affordable air defence

The initiative comes at a time when demand for advanced air defense systems is surging. Ukraine and its allies have relied heavily on the Patriot missile system, but supplies have tightened due to sustained deployments in multiple conflict zones, including the Gulf amid tensions involving Iran. Existing European alternatives such as the SAMP/T remain limited in production capacity.

Denys Shtilierman, Fire Point’s co-founder and chief designer, said the high cost of current systems presents a major constraint. Intercepting a single ballistic missile often requires two or three Patriot interceptors, significantly increasing operational expenses. The company aims to address this gap by offering a more cost-efficient solution and expects its system could achieve its first successful interception by late 2027.

European partnerships and technical gaps

To advance the project, Fire Point is negotiating with European partners to fill critical technological gaps, particularly in radar and targeting systems. Potential collaborators are expected to include leading defence firms such as Hensoldt, Saab and Thales, all of which have expertise in advanced detection and tracking technologies.

Founded in 2022 following the outbreak of war, Fire Point has rapidly expanded its capabilities, becoming a key Ukrainian producer of long-range drones and missile systems. Its FP5 cruise missile has already been deployed in strikes against Russian targets.

Expanding missile capabilities

Alongside air defence development, the company is finalising work on two new supersonic ballistic missiles. The FP-7, with a range of approximately 300 kilometres, is nearing operational deployment, while the larger FP-9 — capable of carrying an 800-kilogram warhead over distances of up to 850 kilometres — remains in testing.

Shtilierman suggested that extending strike capabilities deeper into Russian territory could alter strategic calculations, though analysts caution that Russia has demonstrated the ability to intercept similar systems. However, sustained use of such missiles could place additional strain on already pressured air defenses.

Investment plans and global expansion

Fire Point is also awaiting a decision from Ukraine’s competition authority regarding a proposed $760 million investment by Edge Group for a 30% stake in the company. The deal would value Fire Point at around $2.5 billion and could pave the way for broader projects, including the development of a space launch facility in the United Arab Emirates and low-orbit satellite programmes in Europe.

The company has indicated it will not seek further external funding until it demonstrates tangible progress in its missile defense system.

Production and export ambitions

As global military spending rises, Ukraine has begun cautiously easing wartime export restrictions, allowing defense firms to explore international markets under strict government oversight. Fire Point has already attracted interest from Gulf countries for its drone systems and is awaiting approval for export deals.

Currently, the company can produce around 2,500 long-range drones per month, each costing approximately €50,000. Its Flamingo cruise missiles — produced at a rate of three units for about €600,000 — face some production constraints, though output is expected to increase once a new engine enters mass production and a planned rocket fuel facility in Denmark becomes operational later this year.

By Tamilla Hasanova