US Military-Industrial Complex Jacks Up Prices Amid Ukraine Proxy War: Here’s by How Much

Dedicated Ukraine proxy war supporter and Vermont Senator Bernie Sanders has laced into America’s biggest defense contractors, accusing them of price gouging.

“...many defense contractors see the war primarily as a way to line their own pockets. The RTX Corporation, formally Raytheon, has increased prices for its Stinger missiles sevenfold since 1991. Today, it costs the United States $400,000 to replace each Stinger sent to Ukraine – an outrageous price increase that cannot even remotely be explained by inflation, increased costs, or advances in quality,” Sanders complained in an essay published in Foreign Affairs magazine on Monday.

“When contractors pad their profits, fewer weapons reach Ukrainians on the frontlines. Congress must rein in this kind of war profiteering by more closely examining contracts, taking back payments that turn out to be excessive, and creating a tax on windfall profits,” Sanders urged.

The senator’s shock and outrage over the US military-industrial complex’s war profiteering is in itself a surprise. Serving as a congressman between 1991 and 2007 and as a senator from 2007 onward, Sanders has been part of Washington political establishment for over 30 years now. One might think that to be more than enough time to realize that obscene profitmaking is the name of the arms industry’s game.

The senator’s farfetched epiphany aside, his point stands. Since the 1990s, US weapons giants from Raytheon and Lockheed to BAE Systems to General Dynamics have jacked prices on everything from man-portable anti-tank and air defense missiles to artillery, tanks, drones and more. In other words, the Stinger certainly isn’t the only example of out of control costs at the Pentagon.

Prices for US Military Equipment Sent to Ukraine

Weapon Name	Price Increase
Stinger Surface to Air Missile	$25,000 (1991) - $400,000 (2023)
Javelin Anti-Tank Guided Missile	$126,000 for the launcher and $78,000 per missile (2002) - $249,700 for the launcher and $216,717 per missile (2021)
M777 155mm Towed Howitzer	$2 million (2008) - $3.73 million (2017) - $4 million (2023)
M142 HIMARS Rocket Artillery	$3.5 million (2014) - $4.3 million* (2022).
Switchblade 300 Loitering Munition	$45,000 apiece (2018) - $56,063+$30,000 in fielding costs (2023)
Bradley Fighting Vehicle	$1.11 million (1993) - $1.84 million (2016) - $3.3-$4.35 million (2022)
M1 Abrams Tank	$4.3 million (1989) - $10.66 million (2023)**
Oshkosh M-ATV Mine-Resistant Ambush Protected Armored Vehicle	$385,000 (2017) - $470,000 (2023)
Patriot Missile System	$55 million in 1991, with missiles priced at $600,000 each. $225 million per battery in 2003, and $2 million per missile. A whopping $1.09 billion per battery in 2022, with missiles going for up to $4.1 million each.

* These prices are for HIMARS procured by the US Army. Exported variants of the HIMARS can cost America’s NATO allies anywhere from $19-$36.6 million apiece (!), respectively.

** Note: The Abrams received by Ukraine are a dumbed down ‘Monkey Model’ variant of the tank, without depleted uranium armor plating, active protection, and anti-drone warning equipment onboard.

All Aboard the Gravy Train

The Kiel Institute for the World Economy estimates total Western military assistance to Ukraine to have hit $113+ billion in 2024. On first glance, that figure sounds impressive, representing nearly double Russia’s entire pre-conflict defense budget of $66 billion in 2021.

Taking account of the seemingly out-of-control price increases of US weapons, however, a different picture emerges on the capabilities given to Kiev, and about who the main beneficiaries of the spending bonanza really are (hint: it's not the Ukrainians).

Analysis

Military Industrial Complex and Neo-Cons Getting Rich Off 'Aimless' Proxy War in Ukraine

30 March 2023, 17:58 GMT