Since Russian President Vladimir Putin launched a special military operation in Ukraine, shares of major US defence companies have soared.
“The good days are back,” says Loren Thompson, CEO and defence industry consultant at Lexington Research Institute (USA).
Mr. Thompson made his remarks in the context of the long-running Russia-Ukraine conflict and the rise of a wave of increased defence spending in European and American countries.
According to the Politico news site in the United States, the “happiness” of the US defence industry is visible in stock prices. Since Russian President Vladimir Putin launched a special military operation in Ukraine on February 24, shares of major US defence companies have soared.
Lockheed Martin’s stock increased by 28%, from $354 per share earlier this year to $453 per share on March 25. Raytheon Technologies’ stock has increased by nearly 20% year over year, while Northrop Grumman’s stock has increased by 27%.
War can be a lucrative business venture.
the US and other NATO allies had delivered 17,000 Javelin anti-tank missiles and 2,000 Stinger anti-aircraft missiles to Ukraine in less than two weeks as of March 7. Although the number has undoubtedly increased since then, no official updates have been provided.
Britain announced on March 23 that it would provide Ukraine with over 6,000 missiles. The White House also announced a $800 million aid package on March 16, which includes 800 Stinger anti-aircraft missiles and 2,000 Stinger anti-tank missiles.
According to a list of Ukrainian government wants 500 Javelin anti-tank missiles and 500 Stinger anti-aircraft missiles delivered daily from the US.
The US Congress and the Pentagon are promoting accelerated production of the Javelin and Stinger missiles, according to Politico, and have set aside $3.5 billion in emergency funds for this purpose.
The US Senate Armed Services Committee Chairman, Jack Reed, has welcomed defence industry companies to participate in the deals.
Of course, American defence companies aren’t the only ones who profit. At least 19 US congressmen or their spouses own shares in Lockheed Martin and Raytheon, two companies that make Javelin and Stinger rockets, according to Business Insider (USA) on March 22.
On February 22, Marjorie Taylor Greene, a Republican Representative from Georgia, purchased shares in Lockheed Martin. Russia launched a special military operation in Ukraine on February 24. “War is a big business opportunity,” Ms Green tweeted that day on her personal account.
Putin is the best “F-35 salesman”
Another Lockheed Martin product, the F-35 fighter jet, has become a “hot commodity” due to the escalating conflict between Russia and Ukraine. The purchase of F-35 fighter jets by Germany and Canada was recently announced. The Canadian government decided to buy 88 F-35 fighter jets from Lockheed Martin on March 28 after a decade of deliberation, owing to pressure from the Ukraine situation.
German officials announced on March 14 that they would purchase 35 F-35 fighter jets. The Germans were previously hesitant to buy the F-35, but that changed when Russian President Vladimir Putin dispatched troops to Ukraine.
“In the face of Putin’s attack, the F-35 is irreplaceable,” German Air Force Commander Lieutenant General Ingo Gerhartz stated.
In an interview with Politico, Richard Aboulafia, general director of aerospace consulting firm AeroDynamics Consulting, said: “Putin, without a doubt, is an F-35 salesman. The best of all time.”
Demand for the F-35 has been pushed to an all-time high, with orders likely to reach 200 units per year, far exceeding Lockheed Martin’s current production capacity of 156 units per year, according to Aboulafia.
The drone market is also heating up as a result of the war. According to Aaditya Devarakonda, CEO of anti-drone technology company Dedrone, four of the G7 countries are customers. His firm now has five times the number of orders it had before Russia invaded Ukraine.
However, Dedrone faced two obstacles: one, there were too many orders to fulfil on time; and two, many NATO allies and partners had never purchased such technology before.
Mr. Devarakonda explained, “They’re trying to figure out what’s best for them.”
Industry “inadvertently”
Indeed, Lockheed Martin CEO James Taiclet stated publicly as early as January that the “rebooting of great power competition” would boost defence budgets and sales. The Hill (USA) reported on March 15 that sales were up.
On the same day, Raytheon CEO Greg Hayes told investors that the company expected to find “international sales opportunities” in the face of the Russian threat.
“Tensions in Eastern Europe, as well as tensions at sea, are putting a strain on defence spending in neighbouring countries. As a result, I am confident that we will benefit from it “Mr. Hayes stated. that”.
In an article, Truthout, an award-winning nonprofit media organisation in the United States, criticised the US defence industry corporations, claiming that it was due to the market’s “unintentional dynamics” and “imperialism.” intertwining “NATO’s expansion was fueled by nations, resulting in wars ranging from Eastern Europe to Yemen.
According to data provided by Truthout, the US defence industry employs approximately 700 lobbyists, with nearly three-quarters of them having worked for the US federal government – the highest percentage of any country on the planet. any line of business The defence industry spent $108 million on lobbying in 2020 alone.
According to the Associated Press (USA), the US defence budget for fiscal year 2023, which was submitted by President Joe Biden’s administration on March 28, is $773 billion USD, up 30.7 billion USD from the previous year and a new high.
