Report: Ukraine war ups arms sales but challenges lie ahead

Dec 5, 2022, 4:43 AM | Updated: 4:46 am

FILE - A French artillery piece Caesar is displayed at the Eurosatory land and airland defense and ...

FILE - A French artillery piece Caesar is displayed at the Eurosatory land and airland defense and security trade fair in Villepinte, north of Paris, Monday, June 13, 2022. Global arms sales increased by nearly 2% in the past year, the seventh consecutive year of increases, an international arms sales watchdog noted Monday, Dec. 5, 2022. (AP Photo/Jeffrey Schaeffer, File)

(AP Photo/Jeffrey Schaeffer, File)

STOCKHOLM (AP) — Global arms sales increased by nearly 2% in 2021, the seventh consecutive year of increases, an international arms sales watchdog noted Monday.

It added that the war in Ukraine had increased demand for weapons this year, but the conflict may also lead to a supply challenge, not least because Russia is a major supplier of raw materials used in arms production.

That could hamper efforts in the United States and Europe to strengthen their armed forces and replenish their stockpiles after sending billions of dollars’ worth of ammunition and other equipment to Ukraine, the Stockholm International Peace Research Institute, or SIPRI, said.

“Increasing output takes time” said Diego Lopes da Silva, a senior researcher with SIPRI, adding that if the supply chain disruptions continue, “it may take several years for some of the main arms producers to meet the new demand created by the Ukraine war.”

SIPRI noted that some reports indicate that Russian companies are increasing production because of the war but have had difficulty accessing semiconductors and are also being impacted by war-related sanctions. It gave the example of a company that said that it has not been able to receive payments for some of its arms export deliveries.

Arms sales in 2021 reached $592 billion and was up 1.9% which was higher than the previous period but still below the average for the four years leading up to the COVID-19 pandemic.

In its report published Monday, SIPRI said that “many parts of the arms industry were still affected by pandemic-related disruptions in global supply chains in 2021, which included delays in global shipping and shortages of vital components.”

‘We might have expected even greater growth in arms sales in 2021 without persistent supply chain issues,’ said Dr Lucie Béraud-Sudreau, head of the SIPRI Military Expenditure and Arms Production Program. She singled out companies, such as Airbus and General Dynamics, which also reported labor shortages.

The institute compiled a list of the world’s 100 largest arms-producing and military services companies.

Although U.S. companies dominate arms sales — 40 U.S. companies appeared on that list and totaled $299 billion in 2021 — the North America region was the only one to see a 0.9% drop in arms sales compared with 2020.

For 2021, 27 of the top 100 arms suppliers were headquartered in Europe and the region saw combined arms sales increase by 4.2% compared with 2020, totaling $123 billion. France and Italy recorded a 15% increase in sales among the 100 biggest arms companies, the biggest overall hike.

The combined arms sales of the 21 companies in Asia and Oceania that are included reached $136 billion in 2021 — a 5.8% increase.

As for Russia, six companies were included with total sales of $17.8 billion — an 0.4% increase from 2020. SIPRI noted that, ahead of the Russian invasion of Ukraine, there were signs that stagnation was widespread across the Russian arms industry.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


Arizona and New York attorneys feud over extraditing suspect...

Associated Press

Why Alvin Bragg and Rachel Mitchell are fighting over extraditing suspect in New York hotel killing

Maricopa County Attorney Rachel Mitchell says she isn't into extraditing a suspect due to her lack of faith in Manhattan’s top prosecutor.

2 days ago

A Gila monster is displayed at the Woodland Park Zoo in Seattle, Dec. 14, 2018. A 34-year-old Color...

Associated Press

Colorado man dies after being bitten by pet Gila monster

A Colorado man has died after being bitten by his pet Gila monster in what would be a rare death by one of the desert lizards if the creature's venom turns out to have been the cause.

3 days ago

Police clear the area following a shooting at the Kansas City Chiefs NFL football Super Bowl celebr...

Associated Press

1 dead, many wounded after shooting at Kansas City Chiefs’ Super Bowl victory parade

One person died after 22 people were hit by gunfire in a shooting at the end of the Kansas Chiefs' Super Bowl victory celebration Wednesday.

11 days ago

This image from House Television shows House Speaker Mike Johnson of La., banging the gavel after h...

Associated Press

GOP-led House impeaches Homeland Security Secretary Mayorkas — by one vote — over border management

Having failed to impeach Homeland Security Secretary Alejandro Mayorkas the first time, House Republicans are determined to try again Tuesday.

11 days ago

Defense Secretary Lloyd Austin, right, and Kenya's Defense Minister Aden Duale, left, listen during...

Associated Press

Defense Secretary Lloyd Austin hospitalized with bladder issue

Defense Secretary Lloyd Austin has been hospitalized following symptoms pointing to an “emergent bladder issue."

13 days ago

Joel Osteen, the pastor of Lakewood Church, stands with his wife, Victoria Osteen, as he conducts a...

Associated Press

Woman firing rifle killed by 2 off-duty officers at Houston’s Lakewood Church run by Joel Osteen

A woman entered the Texas megachurch of Joel Osteen and started shooting with a rifle Sunday and was killed by two off-duty officers.

14 days ago

Sponsored Articles


Day & Night Air Conditioning, Heating and Plumbing

Day & Night is looking for the oldest AC in the Valley

Does your air conditioner make weird noises or a burning smell when it starts? If so, you may be due for an AC unit replacement.


Fiesta Bowl Foundation

The 51st annual Vrbo Fiesta Bowl Parade is excitingly upon us

The 51st annual Vrbo Fiesta Bowl Parade presented by Lerner & Rowe is upon us! The attraction honors Arizona and the history of the game.


Canvas Annuity

Interest rates may have peaked. Should you buy a CD, high-yield savings account, or a fixed annuity?

Interest rates are the highest they’ve been in decades, and it looks like the Fed has paused hikes. This may be the best time to lock in rates for long-term, low-risk financial products like fixed annuities.

Report: Ukraine war ups arms sales but challenges lie ahead