Trump to authorize Ukraine Patriot production as war enters 5th year

President Donald Trump plans to authorize Ukraine to domestically produce Patriot missile systems, a move that would deepen US defense ties with Kyiv as Russia's invasion enters its fifth year with no resolution in sight.

"There is a real prospect of ending this war," Zelenskyy said in a statement on X after his call with Trump on Saturday, adding that the conversation would continue at the NATO summit in Ankara.

Trump confirmed the Patriot licensing discussion during a meeting with Zelenskyy on Wednesday at the NATO summit in Ankara, where he also plans to sit down with Syrian President Ahmad al-Sharaa and Turkish President Recep Tayyip Erdogan. The US president praised Zelenskyy as doing "very well" and "very effective" in the war effort, according to state media.

The Patriot authorization would mark a significant escalation in US military support for Ukraine, opening a new licensing revenue stream for RTX Corp., the Patriot's manufacturer, while giving Kyiv greater autonomy in sustaining its air defenses against Russian missile and drone attacks.

Both Zelenskyy and Russian President Vladimir Putin held separate phone calls with Trump on Saturday, congratulating him on the July Fourth commemoration of the 250th anniversary of American independence. Kremlin foreign affairs adviser Yuri Ushakov said Trump reaffirmed his "readiness to help achieve a quick cessation of hostilities and search for peaceful solutions to settle the crisis" in Ukraine.

A senior US official who spoke on condition of anonymity said Trump feels a sense of urgency to bring the war to an end and will speak with Zelenskyy about how to do so. Trump is expected to follow up with Putin after the Ankara meeting, the official said.

Defense industry implications

The Patriot licensing deal would mark one of the most significant technology transfers of the war. RTX Corp., which trades at about 22 times forward earnings, has seen its defense backlog swell as NATO allies replenish inventories depleted by transfers to Ukraine. The company's missile systems segment generated $8.2 billion in revenue last year, with international customers accounting for roughly a third of that total, according to company filings.

The last time the US authorized a major ally to produce a sophisticated air-defense system under license was in 2020, when it approved co-production of Patriot components in Poland as part of a $4.6 billion deal. That arrangement took more than three years to reach full operational capacity.

Broader diplomatic push

Trump's meeting with al-Sharaa comes as the US president has grown frustrated with Israel's war with Hezbollah in Lebanon, which has complicated negotiations in the Iran war. Trump has repeatedly suggested that Syria should fight Hezbollah, a proposal al-Sharaa has rejected, saying Trump's comments were misconstrued.

The NATO summit in Ankara also includes a bilateral meeting between Trump and Erdogan on Tuesday, with the Turkish leader expected to press for progress on F-16 fighter jet sales that have been stalled in the US Congress. Turkey, a NATO member, has maintained economic ties with Russia throughout the war, drawing criticism from some alliance partners.

Trump is scheduled to hold a news conference before returning to the United States on Wednesday.

This article is for informational purposes only and does not constitute investment advice.