NATO vs. Russia: Who wins the race for weapon production?

NATO vs. Russia: Who wins the race for weapon production?

Ukraine, Land - An alarming report by Stockholm International Peace Research Institute (Sipri) shows that Russia leaves far behind in armaments production for the Ukraine conflict NATO and its allies. Despite a defense budget that is ten times as high as Russia, Russia increased its arms production by an impressive 40 percent last year. In comparison, the income of the leading US defense companies only grew by 2.5 percent and that of European companies by measly 0.2 percent.

The numbers raise serious questions about the ability of the West to supply Ukraine with the weapons required. While the nominal sales of the US and European armaments companies with $ 317 billion and $ 133 billion are well above the $ 25.5 billion in Russia, the country has mobilized its economy more effectively in war. Only two Russian companies, Rostec and United Shipbuilding Corporation, made it into the top 100 defense companies, since the transparency about armaments production in Russia has decreased significantly since the annexation of the Crimea in 2014.

armaments and economic challenges

Joseph Fitsanakis, professor of secret service and security studies, emphasizes that Russian military production exceeds that of the entire NATO. Russia increased its military expenses by 24 percent to $ 109 billion last year, which corresponds to 5.9 percent of its economy. This massive armamental effort has led to the defense sector almost half of Russian economic growth. Despite these successes, Fitsanakis sees the sustainability of this war economy, however, because Russian armaments companies are fighting with high interest rates and sanctions.

On the other hand, NATO has difficulty converting these funds into firepower with a defense budget of $ 1,341 billion. European companies have structural problems because 78 percent of their procurement expenses flow to third countries, especially to the United States. These circumstances hinder NATO's ability to effectively help Ukraine, while Russia continuously expands its production capacities and focuses on the production of weapons such as rockets and drones.