WASHIGNTON: U.S. defense contractors saw a massive surge in sales after Russia invaded Ukraine in 2022.
The sales have increased dramatically as the U.S. consistently supplies Ukraine with arms and Europe readies itself against potential spillover.
Benefiting from war
U.S. defense companies such as Lockheed Martin (LMT.N) and General Dynamics (GD.N) saw a huge increase in their sales in the current quarter, as per Reuters.
Jason Aiken, General Dynamics said the company went from receiving orders of 14,000 shells to 20,000 shells a month.
The company, which makes tanks, armored vehicles, and the artillery Ukraine uses, saw a 25% surge in sales compared to the same period a year ago.
Biden’s $106 billion funding
After the crisis erupted in the Middle East, U.S. President Joe Biden asked Congress to provide $106 billion in supplemental funding for Ukraine, the Middle East, and the Indo-Pacific region.
“Some of the supplemental request would go to companies that backfill production of U.S. weapons sent abroad,” Reuters reported.
