The Ukraine war is not good news for the arms industry

The war in Ukraine has increased demand for weapons, with Russia ramping up production while Western countries are replacing weapons given to Kiev with new stockpiles. But the production of weapons is likely to be affected due to the conflict. Due to the war in Ukraine, the production of weapons is feared to be affected.

According to a latest report by the Stockholm International Peace Research Institute (SPR), an international think tank, arms sales among the top 100 arms-producing countries in the world will increase in 2021, but due to supply chain problems. Growth in the sector has slowed down.

The report, published on Monday, said that the Covid-19 epidemic caused a significant slowdown in growth in 2021 compared to 2020. Spry predicts that the war in Ukraine could create similar problems for the industry in the medium term.

While the Russian invasion and the response from Ukraine and the West have led to increased demand for weapons, the war has also created problems for arms manufacturers in obtaining raw materials and other equipment. According to Spry, Russia is a major supplier of raw materials used in the manufacture of weapons.

“This could undermine efforts by the United States and Europe to strengthen their armed forces and build new stockpiles to replace billions of dollars in arms and other equipment to Ukraine,” the report said. are.”

Spry said in his report that although Russian companies have stepped up production due to the war, they are facing difficulties in obtaining semiconductors. Companies have also been affected by war-related restrictions. For example, they are facing difficulties in getting their dues.

“It takes time to ramp up arms production,” said Diego da Silva, a senior researcher at SPR. Weapons makers may take years.”

The report focuses on trends in the arms industry, particularly in 2021, when several supply chain issues have arisen due to the Covid-19 pandemic.

“We would have expected a much higher increase in arms sales in 2021 without supply chain issues,” said Lucy Barud-Sudrow, director of SPR’s military spending and armaments program division, but, “large and small arms manufacturers It is said that their sales were affected last year. Some companies such as Airbus and General Dynamics have also spoken of labor shortages.”