Sales of US military equipment to foreign countries in 2023 increased by 16 percent to a record $238 billion, the State Department announced. Many countries are scrambling to rebuild their stocks that have been depleted due to Ukraine, and prepare for some major conflicts.
These figures confirm the expectations of arms manufacturers Lockheed Martin, General Dynamics and Northrop Grumman, whose stock value rises as global instability grows.
Arms sales and transfers are considered "an important US foreign policy tool with long-term consequences for regional and global stability," the State Department said in a statement.
Last year, HIMARS missile systems were sold to Poland in the amount of $10 billion, then AIM-120C-8 medium-range air-to-air missiles were sold to Germany in the amount of $2,9 billion, as well as advanced surface-to-air missile systems to Ukraine.
Lockheed Martin and General Dynamics expect orders for hundreds of thousands of artillery rounds, hundreds of Patriot missile interceptors, as well as increased orders for armored vehicles to confirm their results in the next quarter.
There are two ways in which foreign countries buy weapons from the US: the first is direct commercial contracts with companies, and the second is for the government of the foreign country to contact the Secretary of Defense or the US Embassy in their country. Both sales methods require US government approval.
Direct sales from companies rose to $157,7 billion in fiscal year 2023, while sales through the U.S. government rose to $80,9 billion over the same period.
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