Skyeton Prevail Solutions, a joint venture between Ukrainian drone manufacturer Skyeton and U.K.-based defense company Prevail Solutions, will manufacture and supply Raybird drones in the U.K., the two companies announced on July 2.

"Skyeton — a Ukrainian unmanned aircraft systems company with 19 years of engineering pedigree, and Prevail Partners — a leading U.K. defense and security company, announced a joint venture to fast-track the volume manufacture, supply, and support for the integration of its best-in-class drone into U.K. military applications," a statement by the two companies said.

Ukraine has developed drones that have proven to be effective amid the onset of Russia's full-scale war against Ukraine in February 2022 and Russia's initial invasion of Ukraine in 2014.

President Volodymyr Zelensky and U.K. Prime Minister Keir Starmer met in London on June 23, where the two leaders agreed to an "industrial military co-production agreement."

"The joint venture will scale the availability of Raybird with new manufacturing in the U.K. for both deployment in Ukraine and provide the necessary integration expertise from Prevail Partners for U.K. and other Western militaries," the statement said.

U.K. lawmaker Iain Duncan Smith described the move as an "important step" for U.K. drone production.

Skyeton says its Raybird drone has over 350,000 flight hours and is responsible for billions of dollars in Russian losses.

Ukraine has relied on drones to meet its own defense needs, as foreign military aid has fallen short in supplying necessary weapons and air defenses.

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The U.K. has used interest generated from frozen Russian assets to purchase weapons for Ukraine, buying 350 air defense missiles worth £70 million ($87 million), The Guardian reported on June 25.

The move represents the U.K.'s first direct use of Russia-linked funds to buy weaponry for Kyiv.

The weapons purchase was funded through Britain's Extraordinary Revenue Acceleration (ERA) scheme, which captures interest from frozen Russian central bank assets.

According to The Guardian, the missiles, originally designed as air-to-air weapons, were converted by RAF engineers and MBDA UK in just three months to fire from ground-based systems.

Five additional Raven launcher systems will accompany the missiles to Ukraine, bringing the total to 13.

U.K. Prime Minister Keir Starmer announced the package ahead of NATO's annual summit.

"Russia, not Ukraine, should pay the price for Putin's barbaric and illegal war," he said.

The package is part of Britain's largest-ever annual military commitment to Ukraine of £4.5 billion ($5.6 billion), the Guardian reports.

It follows a £1.6 billion ($2.0 billion) deal in March for over 5,000 air defense missiles and a separate £350 million ($436 million) investment to increase drone deliveries tenfold.

The announcement comes as Starmer and President Volodymyr Zelensky agreed to work closely on military production between the UK and Ukraine. On June 24, Ukraine's Defense Minister Rustem Umerov announced that Britain will finance Ukrainian-designed drones manufactured in the UK.

European countries cannot fully confiscate the frozen Russian assets due to concerns about international law and financial stability. The European Central Bank warned that such a move could undermine confidence in the euro as a reserve currency, since most of the assets are euro-denominated.

Instead, only the interest generated from these funds is currently being used to back a $50 billion loan package for Ukraine, while the principal amount of 300 billion euros ($348 billion) remains frozen but not seized.

In June, Ukraine received another 1 billion euros ($1.1 billion) from the EU as part of the G7 loan program backed by frozen Russian assets, Prime Minister Denys Shmyhal announced.