The deal combines Italian defense integration with Turkish drone expertise but restricts sales to NATO-aligned nations.
Italy has greenlit a joint venture between defense firm Leonardo and Turkish drone manufacturer Baykar, imposing export restrictions to protect national security. The agreement aims to bolster Europe’s unmanned aerial vehicle (UAV) capabilities by merging Leonardo’s systems integration with Baykar’s drone technology.
The venture prohibits sales to non-NATO or non-European politically aligned countries and classifies included technologies as sensitive. This move provides Baykar access to Europe’s defense market while supporting local manufacturing in Italy, offering an alternative to non-European suppliers.
No immediate market reaction was reported, but the deal could reshape Europe’s defense procurement landscape by reducing reliance on external UAV providers.