U.S. Aims to Grab Hold of Russia’s Global Arms Market Share

A senior U.S. State Department official told the Senate Foreign Relations Committee that the $4 billion Ukraine aid package is partly aimed at shrinking Russia’s share in the global arms exports.

Assistant Secretary of State for Political-Military Affairs Lewis confirmed in her testimony to the Senate Foreign Relations Committee that there is an opportunity for the U.S. to help other countries to divest from Russian equipment.

She added that the United States should take advantage of Russia’s poor performance against Ukrainian forces and its faltering defense supply chain to diminish Moscow’s influence abroad and increase the U.S.’

Lewis also mentioned that this was an opportunity to send a message to U.S. allies about Russia’s reliability as a defense partner.

Washington has been making efforts to encourage partners to diversify arms exports away from Russian systems. It has provided U.S. weaponry to Eastern European nations that send their Soviet era equipment to Ukraine. But Lewis said that China could also have an eye on Russia’s market share.

Lewis underlined the importance to provide affordable or subsidized U.S. solutions not only to encourage partners to stay away from Russian systems but also to ensure they don’t knock Beijing’s door to replace their defense needs.

Russia is the world’s second-largest arms exporter after the U.S., averaging more than $13 billion in reported annual sales. Five states have the lion’s share of Russian exports: India, Algeria, China, Egypt and Vietnam. India is the largest importer of Russian arms since 2016.

The Western sanctions have strained Russia’s defense supply chain, even forcing the military to use microchips from household appliances in some equipment.

Since sanctions have started in late February, U.S. exports of technology to Russia have fallen by nearly 70 percent.

After $650 million in foreign military financing was approved for Ukraine and other Eastern and Central European countries in the previous Ukraine-related aid package, the pending $40 billion package would add another $4 billion.

The proposed financial aid package was approved by the House and has strong support in the Senate but it has been delayed until next week.

Need to access the insight?

Start your 7-day free trial now

Need to access the insight?

Start your 7-day free trial now

Need to access the insight?

Start your 7-day free trial now


Do you need to access special insights on this matter?

Start your 7-day free trial  and become a member today


Subscribe to Top Insights Today

Subscribe to Executive Newsletter Top Insights Today

The Executive Newsletter -Top Insights Today- puts global business events in perspective through special insights

Join the ranks of global executives and subscribe to Top Insights Today

Top Insights Today covers insights on energy, clean-tech, oil&gas, mining, rare earths, defense, aviation, infrastructure, manufacturing, electrical vehicles, big-tech, finance and politics of business

By clicking subscribe you agree to our privacy and cookie policy and terms and conditions of use.

Read more insights

City of London, China Set for Closer Financial Cooperation

The U.K.-China relations may become sour in recent years but China Construction Bank Corp.’s (CCB) City of London branch is enjoying closer financial flows between the two countries and aims to grow even bigger. The branch is the only renminbi clearing bank in Britain, being the essential conduit for the flow of Chinese investment. 

Volkswagen Looking for U.S. Battery Plant Sites

Volkswagen is looking at options for an in house battery cell manufacturing site in North America, similar to its operations in Germany. While the board is still considering the idea, the company aims to ease an impending battery shortage by supplementing suppliers with its own production.  

Chile Presents 2022-2026 Energy Agenda

Chile’s Minister of Energy, Huepe presented the Energy Agenda 2022-2026, which is called by the government a roadmap on energy. Huepe said their focus is on “improving people’s quality of life and promoting actions towards a just socio-ecological transition.” Huepe added that they have been working closely with the private sector to carry out the necessary investments. According to the roadmap, the government aims to phase out coal fired power plants by 2030. Part of the government’s energy goal is “to turn energy into the engine of vigorous economic growth and a new development model.”

Stay informed

error: This content is protected !!