FX-guidance Blog Finance U.S. arms makers fear ramping up production over Ukraine

U.S. arms makers fear ramping up production over Ukraine

The heads of US defense companies, during a meeting with Pentagon officials, expressed concerns about increasing production, as they fear that with a change in the situation in Ukraine, they will be left with unnecessary weapons, Reuters reports, citing sources.

According to the agency, the US Department of Defense held a meeting in mid-April with a group of eight heads of military-industrial complex contractors to discuss the supply of weapons to Ukraine, including Stinger man-portable air defense systems.

“Industry leaders have expressed reservations about increasing arms production,” Reuters said in a statement.

According to sources, one of the heads of the companies said that when the situation in Ukraine changes, “they do not want to be left with warehouses full of inventory … without a guaranteed buyer.”

Formerly Chief Executive of Raytheon Technologies Gregory Hayes said that the company was faced with a shortage of components, some of which are not on the market, for the production of Stinger man-portable air defense systems supplied to Ukraine.

February 24 Russian President Vladimir Putin announced the start of a special military operation to protect the population of Donbass. Then the Kremlin representative Dmitry Peskov clarified that the special operation has two goals – the demilitarization and denazification of Ukraine. According to him, both of these aspects pose a threat to the Russian state and people.

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