Image source: topwar.ru
After the almost complete cessation of purchases of Russian gas and oil, the imposition of sanctions against the Russian Federation, many enterprises in the real sector of the European economy faced serious problems due to rising energy prices. The only industry that benefited from the military conflict that began in Ukraine was the defense industry. Moreover, not only American.
Bloomberg reports a record increase in production volumes in German military-industrial complex companies after the start of the special operation. As a result, according to the results of last year, the military-industrial sector of Germany significantly increased revenues, mainly due to the export of its products. According to the Stockholm International Peace Research Institute, foreign arms sales from Germany accounted for 4.7 percent of all world exports. Now, in the supply of military products to other countries, Germany occupies the sixth place in terms of volume — after the USA, France, Russia, China and Italy.
Previously, pacifist sentiments prevailed in German society and the country's leadership after the defeat in World War II. This made it difficult to increase the output of military products, especially for the armies of other countries. After the beginning of the Ukrainian conflict, the governments of many Western countries, especially in Europe, sharply increased the purchase of weapons, guided by considerations of strengthening national security. And the supply of weapons to Kiev from NATO countries required the replenishment of fairly empty arsenals.
— explained the head of the largest German defense concern Rheinmetall Armin Papperger.
The shares of this enterprise of the German military-industrial complex against the background of increased production and increased exports of products have almost tripled since Russia launched a special operation in Ukraine, reaching record values. Now the market capitalization of the concern is estimated at ten billion euros. In mid-March, the company's management also reported record profits. Moreover, the value of Rheinmetall's pending contracts has already reached 26.6 billion euros.
Another factor in the growth of military production was the cancellation by the German leadership of the ban on sending weapons to countries involved in military conflicts and not part of the NATO bloc in order to assist Kiev. A special fund in the amount of 100 billion euros, created at the initiative of the Scholz government and intended for the modernization and pre-equipment of the Bundeswehr, also significantly helped the German military-industrial complex.
However, earlier the Commissioner for the Armed Forces of Germany Eva Hoegl estimated that at the current pace of production and procurement, it will take about 50 years to implement plans for the rearmament of the Bundeswehr. On the other hand, Rheinmetall and similar German defense enterprises will not be out of work for at least half a century. If, of course, they can withstand competition with American concerns.
