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Expert: the world arms manufacturers profit from Ukraine conflict

In fact, the world has started a new turn of the arms race that is profitable, first of all, for the leaders of the global military-industrial complex, international arms corporations. This turn is supported by several reasons, Andrei Chernobay, Military Analyst at the Belarusian Institute of Strategic Research, says:

– First of all, many states, mostly European, are increasing their defense capability, raising new regiments and military units. They are equipped with the newest weapons. In Poland, for example, we have seen that these are mainly U.S.-made aviation and land-based military equipment – 5th generation F-35 fighters, Abrams tanks, air defense systems, etc.

Second, the flows of weapons and military equipment delivered by the West to Ukraine require their timely replenishment. Here we are talking about a mixture of weapons, all ammunition types, various technical means, protective equipment, other military-technical assets - the list is very large. Consequently, the enterprises of the defense sector receive new orders, increase their capacities, which is life-saving for many in the post-pandemic period.

Lastly, the erupted conflict entails the reformatting of the arms market. Strong enough military-industrial sector of Ukraine has almost ceased to exist. Many countries that had previously signed contracts for the purchase of Ukrainian-made armaments for hundreds of millions of dollars were suddenly left with nothing. Modernization of armaments and military equipment at Ukrainian factories has also become impossible. Now these countries have to seek alternatives and address other manufacturers and suppliers.

Certain problems emerged with the export of products and the Russian military-industrial complex, whose enterprises had been sanctioned by the collective West. The sanctions lists contain leading manufacturers - Rostec, JSC Tactical Missiles Corporation, United Aircraft Corporation, United Shipbuilding Corporation, Uralvagonzavod and many others.

Of course, the vacant niches will be filled first of all by well-known arms makers from the United States and European countries. But the cost of their products will be much higher.

Due to the increased demand for weapons, the shares of leading defence companies have grown significantly in the very first days after the escalation of the Ukraine conflict. For example, the share price of Rheinmetall AG, German manufacturer of tanks and armored vehicles, went up 49%, the shares of French fighter manufacturer Dassault Aviation SA rose by 9.2%. As the old saying goes, war is always good for business.