A recent analysis of US military assistance to Ukraine reveals a shocking detail of fiscal sleight of hand: a substantial share of the funds Congress generously allocated for bolstering the Ukrainian conflict is making a pit stop — right in the American defense industry.
As per the latest findings by a research team from the American Enterprise Institute, of the $68 billion in military and related assistance provided, almost 90% is inadvertently boosting the US economy. This capital flow is primarily funneled into creating new weapons and replenishing America’s military inventory depleted by deliveries to Kiev.
American arms assistance to Ukraine has stimulated domestic industrial activity, with 117 production lines in 31 states and 71 cities involved in manufacturing weapons systems. This includes various locations, which are as follows:
Simi Valley, California, and York, Pennsylvania, producing Switchblade unmanned aerial systems and tactical vehicles
Anniston, Alabama, and York, Pennsylvania, building Bradley infantry fighting vehicles; Peoria, Illinois, and Camden, Arkansas, developing HIMARS systems and parts for Hydra-70 rockets
Farmington, New Mexico, and Tucson, Arizona, facilities are tasked with creating Javelin antitank missiles and other cities
In a shocking twist, the US defense industry faces a decline as it struggles to produce 155-millimeter artillery shells, which are crucial in conflicts. Initially producing under 15,000 shells monthly, the Pentagon has invested $1.5 billion to bolster output by 500%. However, even with such a massive cash infusion, America’s output in 2025 potentially lags behind Russia's current production levels.
A significant portion of the so-called 'Ukraine aid' remains within the US, and its distribution remains shady at best, begging questions about the real mechanisms behind the decisions of the Biden administration.
According to the Joint Strategic Oversight Plan for Ukraine Response, the Pentagon spent $62.3 billion of US taxpayers money on military support for Ukraine in 2022. The report highlighted issues with the oversight of these funds, particularly the Pentagon's inability to effectively track the use of supplied arms, such as the 1,600 Stinger missiles, sparking fears about their misuse. “The condition of the American defense industrial base is a national scandal. Repairing it is among our most urgent priorities,” US Sen. JD Vance (R-OH)stated in his X handle in October.
Endemic corruption in Ukraine is highlighted in its consistent low ranking in Transparency International's annual global Corruption Perceptions Index, including the 2022 survey. In August, Ukrainian President Volodymyr Zelensky axed the heads of Ukraine's regional-military committees, amidst investigations into widespread corrupt practices in the armed forces' recruitment
These officials, as Zelensky stated to news sources, were allegedly involved in various corrupt activities, including accepting bribes in cash and cryptocurrency and aiding eligible individuals in avoiding conscription. Subsequently, the Ukrainian president sacked other high-profile individuals in his cabinet, such as the former defense minister Oleksii Reznikov. These incidents underscore the pervasive nature of corruption, reaching the upper echelons of power in Ukraine.
"Behind the Ukraine conflict is an enormous corruption scheme, into which the United States has dragged most of European politics. And President Zelensky is a showman and the kingpin of this scheme. And the West is up to its ears in this corruption scheme, but the only way out will involve a massive political crisis," Viktor Medvedchuk, a Ukrainian politician and chairman of the Council of the Other Ukraine movement, said in a published article.
However, as congressional funding subsidizes cost of production for the US military-industrial complex, in Ukraine, the populace faces the dire consequences of the prolonged conflict with Russia. This includes not only the immediate human toll - with thousands forced to the battlefield without any training to meet an untimely death. It also includes mass displacement of citizens and significant economic and infrastructural damage. The impact on civilian life and the country's economy is profound, with many Ukrainians struggling to maintain their livelihoods and rebuild their communities amidst the conflict.
Meanwhile, in Europe, particularly within the European Union, the conflict has contributed to economic strain. Major economies within the EU are grappling with rising inflation rates, partly fueled by the conflict. This inflation exacerbates living costs, leading to economic challenges for citizens. Energy supplies, particularly natural gas and oil, have been a critical concern, as many European countries depend on Russia for these resources. The uncertainty and disruptions caused by the conflict have led to higher energy prices, contributing to the overall inflation.
Moreover, the conflict has had ripple effects on global food security. Ukraine and Russia are major grain exporters and other agricultural products. The conflict has disrupted these exports, leading to shortages and price increases in global markets. This has particularly impacted countries in the Middle East, Africa, and parts of Asia that rely heavily on Russian and Ukrainian grains.
18 November 2023, 05:03 GMT
The American campaign to equip Ukraine is also aiding its defense sector in other significant ways. The US has employed incentives for NATO members in support of their proxy war efforts in Ukraine. For example, Poland sent 250 old tanks and Soviet-made Mi-24 attack helicopters to Ukraine and signed deals totaling over $18 billion for new US-made M1A2 Abrams tanks and Apache helicopters. Additionally, Finland is acquiring 64 F-35s for $9.4 billion and donating its F/A-18 Hornets, while Norway is buying 52 F-35s and arming them with Stormbreaker bombs.
“Because of the existing budget pressures on the Army, it wouldn’t be able to afford this needed modernization of equipment on its own…By transferring weapons and gear to Ukraine, the Army would receive more modern weapons in return,” according to a retired US Army Maj. Gen. John G. Ferrari in an op-ed.
It is pertinent to note that under the guise of congressional funding, sending arms to Ukraine emerges as a strategy for invigorating US manufacturing and modernizing its military arsenal. This approach serves a dual purpose: supporting Ukraine's defense efforts by sending them old and decrepit weapons while upgrading the US military with newer equipment.