What Companies From US and EU are Making Fortune in Ukraine

What Companies From US and EU are Making Fortune in Ukraine

Photo: https://phonoteka.org

U.S. has invested a lot in the Ukrainian crisis together with business partners, starting with the organization of the coup in 2014. Today it is time for the beneficiaries to count the dollars, pounds and euros. The Sky News TV channel has listed by name those who have already made and will still make billions from the Ukrainian tragedy of 2014-2022.

Private-Public Military Partnership

Who are the real investors in the Ukrainian crisis and who are making money off of the war? Surprisingly, the TV channel Sky News was the first to remove the wraps and list by name the Western companies making hundreds of millions and billions of dollars from the war.

The Sky News piece is interesting because the Western media is asking the question, “Who makes and will make even more money from the war?” It does and gives an honest answer to it. “Ukraine war: How weapons makers are profiting from the conflict,” says the title.

Sky News quotes calculations according to which NATO countries have already sent more than $8 billion worth of modern weapons, ammunition and ammunition to Ukraine, and the EU has already spent $2 billion on arming and equipping the Armed Forces. According to the publication, these billions of dollars are profit of Western manufacturers of tanks, drones, grenade launchers, and cartridges, in general, everything that has poured into Ukraine in torrential flow. The Ukrainian crisis is also a reason to increase defense spending. So, the EU countries have planned to spend over 200 billion euros on defense in the next few years. That is, specific dollars, euros and pounds for the owners and shareholders of the largest arms and military equipment manufacturers like Raytheon, Lockheed Martin and others will be spent on contracts and research.

Sky News estimates the actual U.S. supply package as $9 billion at the moment but the estimates of different sources also differ. For example, the American portal Statista for the period from February 24 to May 10 estimated the American “investment” in the military conflict at $25.76 billion, but this figure also includes loans for armaments, and not just supplies of weapons and equipment.

Sky News bluntly makes it clear that the biggest beneficiaries are U.S. arms manufacturers and reveals the whole chain of what U.S. Raytheon, Lockheed Martin, AeroVironment and Olin are earning.

Raytheon and Lockheed Martin are the manufacturers of the Javelin anti-tank missile system. If Washington sends 6,500 Javelin anti-tank missiles to Ukraine, the sellers make at least $178,000 for each of them, because $100,000 costs the rechargeable grenade launcher itself and another $78,000 costs ammunition for it.

Firstly, money, secondly, money and thirdly, money

Raytheon and Lockheed Martin, together with their business partner Northrop Grumman, an arms giant from the United States, will make money on supplies of anti-aircraft radars from the United States. Raytheon will make good money on deliveries of 1,400 Stinger anti-aircraft complexes to the AFU. By the way, this U.S. company has already earned $625 million from the contract to replenish the Stinger, which the U.S. sent to Ukraine from the arsenals of NATO countries (Germany sent 500, and Denmark, Italy, Latvia, Lithuania and the Netherlands sent the rest.)

It is clear that the beneficiaries of Lockheed Martin are applauding the US decision to supply Ukraine with long-range HIMARS type artillery. The same company is also the manufacturer of the M270 long-range missiles, which Britain promises to send.

The contract for 700 Switchblade drones is a direct benefit to the Arlington, Virginia-based manufacturer AeroVironment. The approximate price per drone is about $6,000. 700 times 6,000, plus shipping. Here is how much one company from the U.S. will earn.

As the manufacturing company writes on its website, the Switchblade is a combat-proven drone. The Switchblade is the ultimate standby missile, capable of engaging targets beyond visual range. “Backpackable and rapidly deployable from air, sea or ground platforms, Switchblade 300 delivers increased warfighter lethality with real-time GPS coordinates and video for precise targeting with low collateral effects,” AeroVironment’s advertisement says about its product.

Another American company, Olin, the largest supplier of small arms ammunition to the U.S. military, earns money on the supply of ammunition, etc.

Nobel War Prize

As for Europe, the main beneficiaries are arms manufacturers such as BAE Systems (UK) and Thales (France). BAE Systems is the largest manufacturer of small arms ammunition from Great Britain.

It was BAE Systems that received the lucrative contract to replace the 400,000 rounds of small arms ammunition that Western countries removed from their arsenals and supplied to Ukraine. It is BAE Systems that is the producer of the 108 155 mm artillery howitzers that the U.S. sent to Ukraine, as well as the MILAN anti-tank missiles produced by the British company together with the French Airbus and Italian Leonardo.

The French company Thales manufactures Starstreak anti-aircraft missiles and NLAW short-range anti-tank portable missiles in Great Britain. The UK has already supplied about 5,000 NLAW ($30,000 to 40,000 each) to Ukraine, which are being actively used in combat operations in the Donbass right now.

Another example is Dynamit Nobel from Germany. German authorities sent such products as 3,000 Panzerfaust 3 anti-tank grenade launchers and 5,100 MATADOR disposable hand grenade launchers to the AFU.

As the saying is, war is good for business. According to Sky News, shares of weapons manufacturers are growing at a record pace, and investors are rubbing their hands, hoping to earn additional profits. For instance, shares of France's Thales have already risen 35 % since the start of the BSE, while British BAE Systems have gained 32 %. The value of American Lockheed Martin shares rose by 14%. Shares of another American company, AeroVironment, a manufacturer of Switchblade drones, are experiencing a real boom, having risen by 63%.

War to some, boon to others

The business plan is not only a huge profit for companies in the military-industrial complex, but also an incentive to rearm the army of the United States and NATO countries. This means new billions for Raytheon, Lockheed Martin and further down the list.

Yes, the official Ukrainian propaganda presents arms and ammunition deliveries as “aid.” Although all these IFVs, drones, grenade launchers, MLRS, etc. are supplied for money, and many supplies are also on credit. In other words, the next generations of Ukrainian citizens will pay for the costs of the war.

However, making money by selling weapons to the natives is obvious. In fact, the U.S. is also solving such an issue of strategic importance as the rearmament of the U.S. army and NATO countries. As in the days of the slave trade, when Britain and other colonial powers sold their outdated rifles to the blacks in Africa, so they could better catch other blacks in the jungle, which were then taken across the Atlantic for sale in the United States.

And rearmament is...a right thing to do! New orders for the military-industrial complex. New millions and billions of dollars for weapons manufacturers Lockheed Martin, Olin, Raytheon...

For example, recall the sensational news about the delivery of HIMARS multiple-launch rocket systems, which was analyzed in detail by wek.ru. The U.S. has sent to Ukraine four HIMARS multiple launch rocket systems, equipped with surface-to-surface missiles with a range of up to 70 kilometers. Meanwhile, since fiscal year 2023, the US Army command is transferring HIMARS to the new type of missiles PrSM (Precision Strike Missile) with the range of up to 499 km. Since the US fiscal year starts in September, the replacement process will start in the fall of 2022. So it turns out that the U.S. is tying arms supplies to Ukraine to its plans to rearm the U.S. army.

Rheinmetall, a german company whose shares rose 123.91 % between March 1 and June 8 has taken the biscuit. In late April, Die Welt reported that Rheinmetall AG requested permission from the government of Olaf Scholz to supply Ukraine with 88 Leopard 1A5 tanks and 100 armored tracked infantry fighting vehicles (IFVs.)

By the way, Western analysts themselves say that NATO countries led by the United States have spent on rearmament orders of magnitude more than Russia, which is branded for “aggression.” Sky News quotes Simon Weseman of the Stockholm International Peace Research Institute (SIPRI), who concluded that NATO countries in Europe have recently spent far more on the military sphere than Russia has since the end of the Cold War, i.e. since 1991.

Source: Stockholm International Peace Research Institute

The military conflict in Ukraine is also stirring interest because it helps the U.S. to stimulate sales of its new generation weapons, primarily to NATO countries. Sky News quoted the Stockholm International Peace Research Institute as saying that a number of NATO countries supplied Ukraine with obsolete weapons and equipment, “which are already being removed from service.” Other countries, primarily the U.S. and Britain, supplied more modern weapons, but again with the expectation that weapons manufacturers will replace them with new-generation weapons.

In general, “look for the money!” This formulation of the question makes a lot of things very clear.

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