The delivery of weapons should not be confused with the arms business, although both emanate from the budget items that each country allocates to Security and which, according to the Stockholm International Peace Research Institute (SIPRI), amounted to 2.44 trillion dollarssomewhat more than the size with which the GDP of Brazil or Italy will close in 2024, eighth and ninth in the world, the highest percentage of annual spending since 2009 and the ninth consecutive year in which an increase in military disbursements has been recorded.
The data comes from ForeignAssistance.govthe American federal website that provides data on Washington’s foreign aid and has been completed by the financial portal Insider Monkeyfrom investment portfolios, hedge funds and calculations such as those that assure that 14 of the large arms firms have achieved a quota of 275% profit return from May 2024.
The US spent $916 billion on defense last year, 37% of the world total and 68% of NATO disbursements.. A considerable portion of this pie comes from aid to Ukraine against Russia and to Israel in its war against the terrorist organization Hamas. Like the check that the White House wrote last April, for 95 billion, for Ukraine, Israel and Taiwan, essentially.
According to Reuters, Most of these amounts will be managed by Defense conglomerates such as Lockheed Martin, RTX, Boeing or Northrop Grumman. which, in the face of instability in Europe and the Middle East, are benefiting from a wave of revaluation of military assets.
So Lockheed shares have increased 55% since the Russian invasionfrom $361 in February 2022 to $558 today. Given the strong demand for weapons such as the HIMARS or GMLRS light missile launcher systems or the F-35 fighters, with stealth capabilities. In 2023 it had a turnover of 67,000 million dollars, of which 96% were sales related to Defense.
With almost fifty hedge funds -47, they say in Insider Monkey– have selected their stock to shape their investment portfolios. Northrop shares have risen 33% since the start of the Ukraine fightwith whom it maintains co-production agreements for large and medium caliber ammunition.
While, Boeing’s business focuses more on the Israeli Air Force to which it provides Pegasus KC-46A aircraft and small diameter bombs. RTX recorded revenues of 69 billion in 2023, with quarterly results – the first and second – of this year that have exceeded 19 billion.
In this context, these are, from smallest to largest, the 20 largest customers of the US military industry:
20.- Mexico: military shipments (2019-2023): 295 million dollars. Aimed at strengthening the fight against organized crime, drug trafficking and preserving order. Since 2008, the US has sent more than 3 billion weapons to its southern neighbor.
19.- Czech Republic (2019-2023): 324 million. In 2022, Washington approved a line of 106 million to modernize the Czech air forces and build response mechanisms against cyber attacks in the face of the Russian threat to the continent.
18.- Estonia (2019-2023): 334 million. Intensified by Russian proximity.
17.- Lithuania (2019-2023): 339 million. This year, attendance will be 228 million.
16.- Ecuador (2019-2023): 350 million. To combat growing drug trafficking, monitor border lines with Colombia and retaliate against armed groups.
15.- Poland (2019-2023): 375 million. Warsaw’s request for constant modernization of its military programs, weapons acquisition, preferential credit lines and comprehensive military aid roadmaps.
14.- Romania (2019-2023): 397 million. Essentially, to improve maritime security in the Black Sea due to the Russian naval presence.
13.- Bulgaria (2019-2023): 431 million. With a bilateral military cooperation agreement by which Washington grants military assistance in exchange for free access to its information and military arsenal.
12.- Tunisia (2019-2023): 471 million. Although it has fallen in the last two years due to the authoritarianism manifested by the current Tunisian Government.
11.- Pakistan (2019-2023): 536 million. Historical recipient of American military aid that, however, in the last decade, has been losing power and geostrategic dialogue for the Oval Office. Even with a freeze on agreed shipments due to suspicions of Islamabad’s collaboration with armed groups.
10.- Colombia (2019-2023): 731 million. To strengthen peace, security and legal order.
9.- Philippines (2019-2023): 809 million. This year, it will provide Manila with another 500 million aimed at containing maritime tensions with China.
8.- Somalia (2019-2023): 998 million. With more than 3,000 million last decade to launch peace missions and combat the Al-Shabab guerrilla.
7.- Lebanon (2019-2023): 1 billion. In January 2023, it extended another 72 million military and police assistance funds and financial assistance to pay salaries of army and security force personnel.
6.- Iraq (2019-2023): 2.2 billion. Both countries benefit from bilateral agreements to counter the Islamic State in the region.
5.- Jordan (2019-2023): 2.3 billion. One of the great US allies in the area allocates the majority of military contracts to maritime security and cybersecurity. The White House announced last year that it will provide war materials worth another $1.45 billion through 2029.
4.- Ukraine (2019-2023): 2.6 billion. With renewal of 125 million announced in August. Direct aid data for military needs.
3.- Afghanistan (2019-2023): 6.1 billion. Altered since 2021 with the accession to power of the Taliban. Between 2001 and 2021, Washington sent almost 73 billion in aid to Kabul to fight Al Qaeda and ISIS.
2.- Egypt (2019-2023): 6.3 billion. More than 50 billion since 1978. Washington validates its bilateral relationship with Cairo as strategic. The supply of weapons is intended to control the maritime and land borders from any external threat, equip the Army against any emerging risk and contain terrorist groups, especially in the Sinai.
1.- Israel (2019-2023): 16.5 billion. Since its founding as a State in 1948, it has been the main recipient of American weapons. According to Al Jazeera, Tel Aviv has received more than 300 billion in US assistance, 74% military. Since the start of the war against Hamas in Gaza and the West Bank, Washington has approved large-scale arms sales, in addition to redoubling its financial and military aid.
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