Wednesday, February 28, 2024

US military arms sales to foreign countries surge in fiscal 2023

Immigration News

Fidel Rahmati
Fidel Rahmati
Fidai Rahmati is the editor and content writer for Khaama Press. You may follow him at Twitter @FidelRahmati
Photo/Getty Image.

The US State Department has announced that the country’s military arms sales to foreign governments reached $238 billion in 2023.

Reuters, citing the US State Department, reports that the volume of US arms sales to foreign governments increased by 16% compared to 2022 due to recent conflicts in Ukraine and Russia.

The report suggests that the sales and shares of defense companies such as Lockheed Martin, General Dynamics, and Northrop Grumman will rise amid global instability.

According to the US State Department, these equipment sales include $10 billion for missile defense systems to Poland and $2.9 billion for advanced air-to-air missiles and air defense missile systems to Ukraine.

Lockheed manufactures HIMARS, and RTX (formerly Raytheon) produces AMRAAM, while RTX and Norway’s Kongsberg make NASAMS.

Lockheed Martin and General Dynamics anticipate strong results in the coming quarters due to existing orders for artillery rounds, Patriot missile interceptors, and increased demand for armoured vehicles.

Foreign governments purchase arms from U.S. companies through two main channels: direct commercial sales negotiated with a company and foreign military sales involving contact with a U.S. Defense Department official at the U.S. embassy in their capital. Both routes necessitate U.S. government approval.

In fiscal 2023, direct military sales by U.S. companies increased to $157.5 billion from $153.6 billion in fiscal 2022, while sales arranged through the U.S. government surged to $80.9 billion in 2023 from $51.9 billion the previous year.

The United States remains the world’s largest producer and exporter of weapons, with Russia and France following in the second and third positions, respectively.

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