Shares in French aerospace giant Dassault Aviation surged as much as 8% in Paris trading following the announcement of a preliminary deal with Ukraine for as many as 100 of its flagship Rafale fighter jets. The letter of intent was signed during Ukrainian President Volodymyr Zelensky’s trip to Paris, representing a massive potential order for the French manufacturer and a significant enhancement of Ukraine’s air force capabilities.
This 10-year agreement, which President Zelensky hailed as a “historical one for both nations,” is part of a comprehensive defense pact between France and Ukraine. The deal is not limited to the multi-role Rafale jets; it also includes plans for Kyiv to acquire sophisticated air defense systems, modern radars, and unmanned aerial vehicles. This large-scale procurement underscores the depth of the new security partnership being forged between the two countries.
The deal comes as Ukraine desperately seeks to counter Russia’s intensified air war, which has seen relentless attacks from missiles, drones, and glide bombs. These strikes have ravaged civilian areas and targeted critical infrastructure, prompting President Zelensky to make the acquisition of modern air defenses his utmost priority. The Rafale, a highly capable 4.5-generation aircraft, would provide a powerful new tool to challenge Russian air superiority.
For Dassault, this potential order adds to a growing list of export successes for the Rafale. However, a person familiar with the plans noted that the first deliveries will be subject to the successful training of Ukrainian pilots and the development of the required support infrastructure. This indicates a long-term, phased procurement process rather than an immediate transfer of aircraft.
The financing for the massive contract will be handled through a combination of European-led funds. The French presidency indicated that resources from the European Union’s €150 billion Security Action for Europe (SAFE) loan fund would be used. Additionally, Kyiv intends to use a G7-backed mechanism that leverages future revenues from immobilized Russian central bank assets to help pay for the French-made hardware.