Secretary Austin lands in Kyiv to discuss NATO and defense

U.S. Secretary of Defense Lloyd Austin landed in Kyiv
on Oct. 19 for the second stop of his three-country Black Sea area working
visit, he reported by Twitter. Austin first visited Georgia, and will head to
Romania next.

Key to Lloyd’s visit to Kyiv is his focus on the next
reform moves that Ukraine needs to make in the areas of defense and the defense
industry. These will be important steps related to Ukraine’s partnerships and
regional defense cooperation. Lloyd will discuss these matters with President
Volodymyr Zelensky and Defense Minister Andrii Taran.

The Russian government weighed in on Lloyd’s visit,
warning against closer ties between Ukraine and the U.S. “Ukraine joining NATO
is the worst-case scenario for Russia”, Kremlin spokesperson Dmitry Peskov
stated on Oct. 18.

James Hydzik: Lloyd’s
visit is the Americans’ formal answer to Zelensky’s insistent questions about
what Ukraine has to do next and why the country isn’t a full member yet. A
formal list of tasks will make for interesting reading, and perhaps point to
opportunity in the defense sector.

The reaction from Russia to the trip, and especially
the Ukraine leg, has grown against the backdrop of the expulsion of eight
Russian observers from NATO, and the subsequent closure by the Russians of their
official liaison office with the organization. However, Peskov wasn’t lying
when he called Ukraine’s joining NATO a worst-case scenario, not because
Ukraine will start clamoring for ethnically Ukrainian land in Russia, or that
it would mark the end of centuries of Kremlin-led domination over the area, but
because Kyiv is a fundamental part of the Russian foundation myth. Examining
the accuracy of that myth lies outside the scope of this news report. However,
the view is something that trumps economic sense and more economic damage, such
as gas prices, can be expected because of it.

For businesses focused on Ukraine, opportunity can
come from the reforms, as Turkey has shown in terms of preparing to produce
UAVs in Ukraine.