Dassault Aviation Stock Soars 8% on Ukrainian 100-Jet Rafale Deal

Financial markets reacted decisively to Ukraine’s new defense pact with France, sending shares of Dassault Aviation surging by as much as 8% in Paris trading. This spike was triggered by the signing of a letter of intent for Ukraine to purchase as many as 100 of the company’s high-tech Rafale fighter jets. The deal, part of a “historical” 10-year security agreement, represents a massive potential windfall for the French aerospace giant and a significant strategic pivot for Ukraine.
The agreement was signed by Ukrainian President Volodymyr Zelensky during a crucial trip to Paris. Zelensky hailed the pact as a “special moment” that also includes plans for France to supply Kyiv with advanced air defense systems, sophisticated radars, and unmanned drones. This comprehensive package aims to build a robust shield against Russia’s escalating air war, which has been devastating Ukrainian cities and infrastructure.
The 100-jet order is a long-term project, with officials cautioning that the first deliveries are contingent on the lengthy process of training Ukrainian pilots and technicians. However, the sheer scale of the 10-year agreement provides a stable, long-term order book for Dassault and a clear modernization path for the Ukrainian air force, which is also in line to receive F-16s from NATO allies and is pursuing 150 Saab jets from Sweden.
The financing for this massive procurement will be sourced from European funds, a significant development as US aid has been halted under the Trump administration. The French presidency confirmed that the EU’s €150 billion Security Action for Europe (SAFE) loan fund would be tapped. Furthermore, Zelensky stated that Kyiv would also utilize a G7-backed mechanism to deploy future revenues from frozen Russian assets to pay for the new hardware.
This deal solidifies Europe’s role as the primary defense supplier and financier for Ukraine. As the war enters its fourth year, Ukraine’s reliance on partners like France and Sweden has become absolute, and this agreement cements a deep industrial and military alliance between Paris and Kyiv for the next decade.