G7 Agrees to License Weapons Production in Ukraine as Trump Signals Shift on Russia

The Group of Seven leading democracies has agreed to allow Ukraine-based companies to manufacture long-range missiles and air defence systems under license from Western defence contractors, marking a significant escalation in military support for Kyiv. German Chancellor Friedrich Merz announced the decision at a G7 summit on Wednesday, stating that the allies would grant licences to both European and Ukrainian firms to boost domestic military production. "We are all currently producing too little, and this can be offset by granting licences to companies that have these production capabilities," Merz said. The move aims to address critical shortages of interceptor missiles needed to counter Russian cruise and ballistic missile attacks, as existing supply chains have proven inadequate.

The G7's overnight statement committed to "increase the delivery of air defence capacities, additional systems and interceptors, and long-range capabilities" to Ukraine and pledged to consider licensing arrangements to expand domestic production. US companies would play a key role in granting licences to European and Ukrainian manufacturers, enabling them to produce both air defence systems and deep-strike capabilities. This represents a notable expansion of Western military assistance beyond direct weapon transfers to include technology transfer and production capabilities. Ukraine's defence ministry is simultaneously seeking an additional $20 billion in military funding from allies, a request to be formally presented at a meeting of the Ukraine defence contact group on Thursday.

The agreements reflect what G7 leaders described as a "very deep change in the US approach" under President Donald Trump, who unlike his previous tenure did not exit early from negotiations. French President Emmanuel Macron highlighted the shift, emphasizing that Trump, alongside other leaders, acknowledged there was no serious willingness on Russia's part to discuss peace. Trump himself stated that both Putin and Zelenskyy "want to do something, they just don't know how to do it," and characterised Russia as "the offensive party" losing the most troops. However, the G7 remains cautious about diplomatic engagement, with EU officials revealing preliminary contacts between EU chief António Costa's office and the Kremlin while insisting the bloc supports Ukraine in achieving "a just and lasting peace."

Ukrainian President Volodymyr Zelenskyy is scheduled to address EU leaders at a Brussels summit on Thursday. Italian Prime Minister Giorgia Meloni called for the appointment of a single European Union envoy from a "medium-sized power" to handle contacts with Russia, warning that a proliferation of diplomatic channels risked creating confusion. Meanwhile, the EU plans to allow Ukrainian refugees to remain in the bloc for another year, demonstrating broader commitment to supporting Ukraine throughout the conflict.