Saturday, January 21, 2023

Stocking Ukraine could generate foreign military sales boom


Evgeniy Maloletka

Ryan Brobst, Bradley Bowman
Fri, January 20, 2023 

Replacing the military equipment transferred to Ukraine by the United States’ NATO allies could lead to roughly $21.7 billion in foreign military sales or direct commercial sales for American industry, according to research by the Foundation for Defense of Democracies’ Center on Military and Political Power.

At the same time, backfilling the weapons these allies have sent to Ukraine with U.S. equipment could improve their capabilities and build a more effective military deterrent while lowering the Pentagon’s cost to procure these weapons. It would also enhance the quality of the weapons U.S. warfighters wield and strengthen U.S. defense industrial base capacity.

In addition to the $26.7 billion worth of security assistance the United States has committed (as of Jan. 20) to Ukraine since Russia’s Feb. 24 invasion, other NATO members have contributed billions of dollars’ worth of equipment. It is difficult to calculate precisely the cumulative value because many countries, unlike the United States, do not publish detailed lists.

CMPP relied on open-source information from the military analysis site Oryx to establish a baseline regarding the types and quantities of arms non-U.S. NATO countries have committed to Ukraine. It then identified an analogous U.S. system and used data from Defense Security Cooperation Agency announcements of FMS sales to estimate the unit price of the respective American system. The center then added the cost of all replacement systems the U.S. could and would likely provide, which totals roughly $21.7 billion as of Dec. 5.

Admittedly, such analysis is somewhat imprecise, given the uncertainty in forecasting future decisions by allied governments. The research project, therefore, required several assumptions, which certainly can be debated.

Some countries may not replace equipment sent to Ukraine at a 1:1 ratio or may seek to acquire different American equipment than predicted. Moreover, some governments will buy equipment from non-U.S. manufacturers instead.

At the same time, the actual amount of equipment provided to Ukraine (and likely needing replacement) is almost certainly understated in this research due to some equipment being provided in unknown quantities or in secret. Additionally, many NATO allies are increasing their defense budgets significantly.

NATO countries (not including the United States) have cumulatively increased their real defense spending each year since 2015, and those levels of defense spending are likely to increase further following Russia’s latest invasion. Poland, for example, is raising its defense spending from 2.2% of its gross domestic product to 3%, which will help Warsaw purchase more military equipment.

Replacing the (often legacy) equipment NATO members have donated to Ukraine with modern American systems will improve the capabilities of individual NATO members and the alliance’s combined ability to deter aggression. For example, replacing Soviet legacy multiple launch rocket systems such as the BM-21 with High Mobility Artillery Rocket Systems, which have proven very effective against the Russian military, would allow NATO members to strike adversaries with greater precision and from greater range. Replacing Soviet-era T-72 tanks sent to Ukraine with M-1 Abrams tanks would yield similar benefits.

In addition, an alliance in which individual member countries employ more common equipment is one that can train and operate together more effectively and use more efficient logistics and sustainment systems.

Increasing production to backfill NATO members will also bring benefits for the Pentagon, U.S. service members and American taxpayers. Foreign military purchases of American equipment increase the quantities produced, which “may help lower unit costs by consolidating purchases for FMS customers with those of DoD,” according to the DSCA. That can help stretch the U.S. defense budget.

Increased and predictable multiyear demand for arms can incentivize the U.S. defense industry to invest additional money into research and development at the company’s own expense. Higher rates of investment in R&D can lead to more advanced weapons, helping ensure U.S. warfighters are wielding the best capabilities possible wherever they deploy, including in the Indo-Pacific region and the Middle East.

Increased demand for American equipment and munitions will also incentivize the U.S. defense industrial base to create much-needed additional production capacity. Current U.S. industrial base production capacity cannot adequately support the Pentagon’s most significant military modernization effort in four decades and arm Ukraine to defeat Putin’s invasion while ensuring Taiwan has the means to deter an invasion from Beijing.

To be sure, investments in additional production capacity often don’t yield fruit for some time. Moreover, any additional production capacity created in the short term should be used first to equip American forces and beleaguered democracies such as Israel, Taiwan and Ukraine confronting grave current or prospective threats. With the exception of allies on NATO’s eastern flank, shipments of American arms to Europe should only come after those urgent requirements are addressed.

Regardless, decisions now to eventually backfill NATO allies with American arms to replace those sent to Ukraine will help strengthen U.S. and transatlantic security and enable the United States to once again become the arsenal of democracy. That will have benefits far beyond Europe.

Ryan Brobst is a research analyst at the Foundation for Defense of Democracies, where Bradley Bowman is the senior director of the Center on Military and Political Power.

Macron to hike military funds amid Ukraine war, new threats



French President Emmanuel Macron, left, arrives to review the troops before his New Year address to the French Army, Friday, Jan. 20, 2023 at the Mont-de-Marsan air base, southwestern France. President Emmanuel Macron is expected to unveil his vision for modernizing the military in his nuclear-armed country, taking into account the impact of the war in Ukraine and evolving threats around the world. (AP Photo/Bob Edme, Pool)


SYLVIE CORBET and ANGELA CHARLTON
Fri, January 20, 2023 

PARIS (AP) — French President Emmanuel Macron on Friday proposed to boost defense spending by more than a third through 2030 and to “transform" France's nuclear-armed military, to better face evolving threats and take into account the impact of Russia's war in Ukraine.

Macron announced a proposal for 413 billion euros (nearly $450 billion) in military spending for the period of 2024-2030, to ensure “our freedom, our security, our prosperity, our place in the world.”

That compares with spending of about 295 billion euros in a similar military plan for 2019-2025.

The money would notably go to modernizing France's nuclear arsenal, boosting intelligence spending by 60%, doubling the number of military reservists, reinforcing cyberdefense and developing more remote-controlled weapons.

“Nuclear deterrence is an element that makes France different from other countries in Europe. We see anew, in analyzing the war in Ukraine, its vital importance," he said in a speech to military personnel at an air base in Mont-de-Marsan in southwest France. France is the only member of the 27-nation European Union with nuclear weapons, and the bloc is still largely dependent on the U.S. and NATO for defense.

Macron also wants to expand French submarine surveillance capacity to depths of 6,000 meters (nearly 20,000 feet), both for military reasons and to protect critical infrastructure such as undersea cables carrying energy and information across oceans that have come under threat.

Friday's speech comes as defense officials from the U.S. and allies are meeting in Ramstein, Germany, to discuss further help for Ukraine.

Macron didn’t address Ukraine’s pleas to supply French Leclerc tanks — even after a tongue-in-cheek video released Thursday by Ukraine’s defense ministry vaunting the tanks as “compact, sporty, easy to park’’ and quoting French philosopher Jean-Paul Sartre.

France already has provided Ukraine with 18 Caesar cannons, six TRF1 cannons, two Crotale air defense systems, rocket launcher units, anti-tank and anti-air weapons, armored vehicles, munitions, protective gear, medical equipment and military rations, according to Macron’s office. Earlier this month, France agreed to send AMX-10 RC armored surveillance and combat vehicles that in French are called “light tanks.”

France also is aiming to train at least 2,000 Ukrainian soldiers as part of EU-wide training efforts.

“What we are experiencing on European soil for the past year in Ukraine teaches us lessons,” Macron said.

“The threats are multiple, and mix together,” he said. “There is no longer a peace dividend, because of Russia’s aggression against Ukraine ... The international order has ceded to a state of play between nations like we have not seen in decades.”

Macron noted threats from hybrid warfare, cyberattacks and continued threats from terrorism, and called for boosting the production capacity of the arms industry to be able to help Ukraine and supply the French military.

Among lessons of the Ukraine war, Macron’s office said the French military needs to be more reactive and ready for quick deployments, and have equipment that performs well, logistical support and ammunition.

Macron wants France’s military strategy to strengthen the country’s role as an independent global power. He called for reinforcing military partnerships with European neighbors as well as countries like Egypt, India, United Arab Emirates, Indonesia, and in Africa.

The new budget plan would need parliamentary approval. Macron's centrist alliance doesn't have a majority in either house of parliament, but military officers have long lamented shrinking spending on the armed forces, and conservative and far-right parties tend to support investment in defense.

France’s military budget reached 1.9% of gross domestic product in 2021, with a goal to reach 2% by 2025, as per NATO expectations.

___

Bob Edme contributed to this report from Mont-de-Marsan.




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