Italian defense giant Leonardo has quietly registered a research subsidiary in Kyiv, planting a direct corporate flag in Ukraine's wartime defense ecosystem, Euractiv reported. The move reverses the company's previous public stance against opening operations in Ukraine.

European defense firms are quickly embedding inside Ukraine's defense industry, as Ukraine's wartime manufacturing base has become a draw rather than a risk for Western capital.

Kyiv-based R&D company

Leonardo Ukraine appeared in Ukraine's business register on 20 May, but the company disclosed the step only in its H1 2026 financial report at the end of July. The subsidiary's share capital stands at about $125,000. Leonardo International wholly owns it.

"We have completed the legal process to begin operations. The new company will be used to work in this region," a Leonardo spokesperson said.

The subsidiary will focus on R&D covering communications and navigation systems, software, IT services, and electronic and optical technologies. The step brings Leonardo closer to Ukraine's drone and missile industry, which has expanded rapidly during the war.

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From no factory to a Kyiv office

Just over a year ago, then-CEO Roberto Cingolani said that Leonardo had no plans to open a factory in Ukraine, as Reuters reported. At the same time, Cingolani pledged to test Leonardo's Michelangelo Dome air defense system in Ukraine. The Italian government did not reappoint him in April 2026. Lorenzo Mariani took over as CEO in May.

The subsidiary is not a factory. But it gives Mariani a registered legal presence inside Ukraine's defense innovation ecosystem, positioned near the drone and electronic warfare sectors Leonardo wants to tap.

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Leonardo is not the first major European defense firm to set up inside Ukraine. Germany's Quantum Systems established three joint ventures and made the country its second-largest international base. Rheinmetall is building an ammunition plant there. Ukrainian defense companies, in turn, have opened production facilities across Europe.

Ukraine has opened its own criminal investigation into the 2022 destruction of the Nord Stream gas pipelines, months after Germany charged a Ukrainian over the blasts, Suspilne reported. Prosecutors in Kyiv registered the case on war-crimes grounds and say they will test whether Russia staged the sabotage to discredit Ukraine. Serhii Kuznietsov is due to stand trial in Germany in October.

Kyiv will test a Russian false-flag version

Ukraine's Security Service, under the Prosecutor General's Office, opened proceedings on 9 July under the article on violations of the laws and customs of war. Kuznietsov's Ukrainian lawyer, Mykola Katerynchuk, told Suspilne about the case.

The Prosecutor General's Office confirmed it is supervising a probe into the "possible commission in September 2022, amid the international armed conflict between Russia and Ukraine, by citizens of Ukraine, of actions connected to the undermining" of both pipelines in the Baltic Sea. It said the case was registered after the "independent discovery in the media" that Germany had charged a Ukrainian citizen.

Given Russia's use of hybrid methods, investigators will also examine whether Russians organized the explosions as a "false flag" operation, using Ukrainian citizens or imitating their participation to discredit Ukraine.

The office said it used the laws-and-customs-of-war charge because it matches the qualification chosen by Germany's Federal Prosecutor's Office.

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The case against Serhii Kuznietsov

The pipelines exploded on 26 September 2022. On 8 August 2025, Germany's Federal Court of Justice issued an arrest warrant for Kuznietsov, alleging he led a group of six who mined the pipelines and detonated them remotely.

Italian police arrested him on 21 August 2025, and Italy's Supreme Court later confirmed his extradition to Germany. A Polish court, by contrast, refused a German request for another Ukrainian suspect, Volodymyr Zhuravlov.

On 2 July 2026, Germany's Federal Prosecutor's Office published its charges — an attack on civilian objects, causing an explosion, and destroying structures. Kuznietsov denies guilt.

The U.S. has "reviewed" the components it is supplying Ukraine, but did not halt assistance, Italian Prime Minister Giorgia Meloni said on July 4.

"The United States has not stopped supplying weapons and supporting Ukraine, it has reviewed the decision to supply specific components... (this is) significant but very different from the total American disengagement that has been reported," Meloni said, speaking at a forum.

U.S. President Donald Trump on July 3 denied that Washington has paused supplying weapons to Kyiv amid media reports of a halt in shipments.

Pentagon spokesperson Sean Parnell confirmed on July 2 that some military assistance to Ukraine has been halted as the U.S. Defense Department conducts a review of foreign aid deliveries.

"I hope for positive developments on the issue," Meloni said, adding that she has spoken to Trump regarding Ukraine.

The weapons reportedly held back include two dozen Patriot air defense missiles, over two dozen Stinger air-defense systems, precision artillery rounds, Hellfire missiles, drones, and more than 90 AIM air-to-air missiles launched from F-16 fighter jets.

NATO Secretary General Mark Rutte said on July 2 that he understands the White House's need to safeguard its own defense capabilities, but underscored that Ukraine urgently requires sustained support.

"I totally understand that the U.S. always has to make sure its interests are covered... When it comes to Ukraine, in the short term, Ukraine cannot do without all the support it can get," Rutte said.

A bipartisan group of U.S. lawmakers voiced their opposition to the decision to halt military aid shipments to Ukraine on July 2.

"We must build up our own Defense Industrial Base here in the U.S. while simultaneously providing the needed assistance to our allies who are defending their freedom from brutal invading dictators. To not do both is unacceptable," Republican Rep. Brian Fitzpatrick, the co-chair of the Congressional Ukraine Caucus, said.

Democratic Senator Richard Blumenthal, a member of the Senate Armed Services Committee, described the military aid pause as "fallacious and maybe even disingenuous."

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Italy has pledged 1.5 million euros (approximately $1.6 million) to support humanitarian demining efforts in Ukraine, deepening its partnership with the United Nations Development Programme (UNDP) and the Ukrainian government.

The agreement was formalized during a high-level ceremony in Kyiv on June 23 attended by Italian Ambassador Carlo Formosa, UN Assistant Secretary-General and new UNDP Administrator Haoliang Xu, Jaco Cilliers, Resident Representative of the UNDP in Ukraine, and Ukraine’s First Deputy Prime Minister and Economy Minister Yuliia Svyrydenko.

"Demining is not just a technical operation; it is a deeply humanitarian act that combines cooperation and innovation to restore hope in Ukraine," Ambassador Formosa said. "This project is not only a response to the emergency — it’s a step toward recovery. It’s about returning land to farmers, playgrounds to children, and safe roads to families."

The funding will support UNDP’s mine action program, which focuses on clearing land contaminated by mines and explosive remnants of war, ensuring the safe return of land to Ukrainian communities.

The initiative comes as Ukraine continues to grapple with one of the world’s largest demining challenges. According to the State Emergency Service, the total area of potentially mined land has been reduced by over 20% since late 2022. However, approximately 137,000 square kilometers (52,900 square miles) — much of it farmland — remain contaminated. Demining operations are carried out by the emergency service personnel, National Police, Ministry of Defense, and non-governmental organizations.

Currently, 112 certified demining operators, including eight international groups, are active in Ukraine, the State Emergency Service reported on June 24. Their combined capacity includes more than 9,000 personnel, 278 specialized vehicles, and over 13,000 metal detectors.

While significant progress has been made, Ukrainian officials stress that continued international support and funding are critical to accelerating clearance efforts.

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