The US and its allies have been ramping up arms sales to Ukraine
A US Army M1A1 Abrams tank with mounted mine roller, as delivered to Ukraine. © Getty Images / picture alliance / Contributor
Revenues of the top 25 Western defense contractors increased by 11% in the first half of the year to $212 billion, the Ravenstvo Media Telegram channel reported on Tuesday, citing corporate information.
According to calculations, the companies’ collective arms sales for 2023 are expected to amount to $448 billion, marking a $47 billion increase on last year. By 2026, that amount could rise by more than 20% to $554 billion on the back of arms deliveries to Ukraine and rearmament in Europe, the report noted.
It is estimated that Western defense contractors will increase revenues by $150 billion, or 37%, from 2021 to 2026. In contrast, economic growth in advanced countries will be half that pace in the same period, Ravenstvo Media reported. The channel cited IMF projections that by 2026, the collective GDP for advanced nations will be $67.8 trillion, compared with $56.6 trillion in 2021.
According to a new Defense News ranking of the top 100 defense firms, American weapons makers continue to dominate the global arms industry, with four US-based companies in the world’s top five military contractors. In 2022, America’s top five weapons contractors made $196 billion in military-related revenue, the ranking showed.
The US has emerged as the main source of weapons for Ukraine amid its conflict with Russia, having committed some $37 billion in security assistance to Kiev. According to Ravenstvo Media, Boeing is dominant among defense-focused companies, with supplies to Ukraine ranging from ScanEagle unmanned aerial vehicles and Avenger air defense systems, to Harpoon and Hellfire missiles, and Ground Launched Small Diameter Bombs (GLSDB).
Fellow US defense contractor RTX, formerly known as Raytheon Technologies, has also supplied an array of arms and systems, including Patriot long-range missiles, Javelin and TOW anti-tank systems, and Stinger MANPADS, among others.
France has sent SCALP long-range missiles, which are manufactured by MBDA, a joint venture between BAE Systems, Airbus and Leonardo.
A recent report by the Pentagon inspector general revealed that some of the military equipment supplied to Ukraine by the US and its allies has fallen into the hands of criminal groups. Moscow, which strongly opposes the supply of Western weapons to Kiev, has frequently pointed to the danger of arms being smuggled out of Ukraine and sold on the black market.
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