- The global community would have given up hopes of expecting the increasingly disastrous Russia-Ukraine war to end any time soon. Despite diplomatic efforts, several rounds of confabulations overt as well as covert, and unyielding sanctions imposed on Russia, Moscow continuing to pursue the conflict with renewed vigour is a matter of grave concern. The new year has not brought any cheer as both sides remain firm with their respective stand to not yield an inch. The global supply chains continue to remain under duress severely affecting the economies of countries. The United Nations as well as a few advanced countries making efforts to see sense in the futility of war has failed to alter the stand of opposing leaders. Who is benefitted from the mayhem then?
PC: Sarah Zaaimi
- None other than the arms manufacturers who are laughing all the way to the banks. Let’s delve to see how. The New Year started with Ukraine’s offensive in the Russian-occupied Donetsk region. Concurrently, Russia has been conducting night-time air strikes against Ukrainian cities and civilian infrastructure. The world wearily wonders whether the continuing war will deliver economic shocks. Those thoughts are not unfounded either. Millions across countries have seen prices go up and real incomes drop, energy and food becoming more expensive, and bank credit getting dearer. Nonetheless, global arms manufacturers are bestowed with Christmas Day gifts every day of the ongoing war with no signs of abating.
- Since the beginning of the conflict last February, defence companies have seen their stocks rise dramatically as the West rushed military aid to Kyiv. Many of these weapons came from reserve stockpiles of Western countries, requiring these systems to be replenished through fresh contracts with arms makers. While Europe has upped its contribution in recent months, the US remains the largest individual contributor towards weapons for Ukraine, committing $18.5 billion in military aid for Kyiv, which included the Patriot air defence system. Mind you, the US defence budget will hit a record $858 billion – bigger than Switzerland’s GDP – this year out of which at least $800 million will go towards security assistance to Ukraine.
PC: STEVEN ERLANGER
- The defence bill authorizes specific purchases from arms companies like Lockheed Martin and General Dynamics whose systems have already marked their presence on the Ukrainian frontline. As reported, the American Himars rocket launcher used by the Ukrainian forces in the Donetsk strike was probably of Lockheed Martin make. Thus, it is hardly surprising that American defence companies are having a good time. No wonder, Lockheed Martin’s share price over the past year grew by 11%, Northrop Grumman by 23%, and AeroVironment by 21%. Arms manufacturers like wars. They wish the conflict to continue perpetually without a thaw in sight. This situation should compel all concerned to try and wage peace in Ukraine sooner than later.
