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Western Weapons Manufacturers Benefit As Their Stocks Surge After War Broke In Ukraine 

3 mins read

Russian invasion of Ukraine has commenced leading the world into anxiety and panic. This invasion has triggered many international communities, especially NATO. Russia was formerly known as USSR which was a superpower during the cold war and experts believe that the invasion of Ukraine might bring many geopolitical changes in the entire world. Russia during the invasion has killed more than 300 civilians and have bombarded many buildings, government & civilian. The world is shaken by the entire war-like situation, but the arms industry is rising amidst this chaos. The western weapon manufacturer’s stocks have seen a boom after the invasion.

NATO countries are starting to respond to the situation by promising to raise defence spending and also providing military aid and loans to Ukraine. Weapons manufacturer’s stocks are rising as the news spreads. After the initial quiet during the pandemic, the weapons industry saw their stocks soaring after the build up in Ukraine.

Since January Lockheed Martin has risen more than 20% while Raytheon Technologies stocks jumped more than 20% on 24 February 2022. Investors are heavily investing in the arms industry considering the current situation. USA’s Northrop Grumman’s and France’s Thale Group share has gone up more than 25% since Russia’s initial attack on Ukraine. British weapons brand BAE Systems stock surged by 32%. American L3Harris Technologies saw nearly 18% rise since 24 February 2022. The Italian weapons manufacturer Leonardo S.p.A. witnessed their stock jump more than 30% after war broke in Russia.

Germany’s commitment to significantly increase military expenditure after years of austerity that have left substantial elements of its armed forces with obsolete equipment is expected to bolster Europe’s defence sector, with stock prices already rising.

In January 2022, many CEOs boasted about flourishment the war will bring them in the coming decade. According to the Chicago-based magazine Raytheon CEO Greg Hayes mentioned current tensions in Eastern Europe as factors from which his company could benefit, ‘earnings call,’ which is a teleconference or webcast in which a public company discusses its financial results for a specific period. Lockheed Martin CEO Jim Taiclet told investors in a similar ‘earnings call’ the same day that the ‘great power rivalry (between the US and Russia over Ukraine) bodes greater business for the corporation,’.

So does the arms industry profiting indicate war and rivalry?

Can war be justified in the name of financial benefits? 

Enayat Garg

Enayat Garg is currently pursuing BBA honours. She is an enthusiastic environmentalist and a writer.

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