January 20, 2023
Stocking Ukraine could generate foreign military sales boom
Replacing the military equipment transferred to Ukraine by the United States’ NATO allies could lead to roughly $21.7 billion in foreign military sales or direct commercial sales for American industry, according to research by the Foundation for Defense of Democracies’ Center on Military and Political Power.
….It would also enhance the quality of the weapons U.S. warfighters wield and strengthen U.S. defense industrial base capacity.
In addition to the $24.2 billion worth of security assistance the United States has committed (as of Jan. 6) to Ukraine since Russia’s Feb. 24 invasion, other NATO members have contributed billions of dollars’ worth of equipment. It is difficult to calculate precisely the cumulative value because many countries, unlike the United States, do not publish detailed lists.
NATO countries (not including the United States) have cumulatively increased their real defense spending each year since 2015, and those levels of defense spending are likely to increase further….Poland, for example, is raising its defense spending from 2.2% of its gross domestic product to 3%, which will help Warsaw purchase more military equipment.
Replacing the (often legacy) equipment NATO members have donated to Ukraine with modern American systems will improve the capabilities of individual NATO members and the alliance’s combined ability….
Increased demand for American equipment and munitions will also incentivize the U.S. defense industrial base to create much-needed additional production capacity. Current U.S. industrial base production capacity cannot adequately support the Pentagon’s most significant military modernization effort in four decades….