EXCLUSIVE Russian Invasion Stimulates European Demand For US Drones And Missiles

WASHINGTON, March 17 – European governments have turned to the US government and defense contractors with a list of weapons purchases, including drones, missiles and missile defenses, as the Russian invasion of Ukraine spurs renewed demand for US weapons.

Germany, which is close to a deal to supply 35 F-35 jet fighters to Lockheed Martin Corporation (LMT.N), has requested information on ballistic missile defense systems, sources familiar with the situation said. More

Meanwhile, Poland urgently wants to buy state-of-the-art Reaper unmanned systems from the US, a Polish government official said this week. More

Requests are also coming from other countries in Eastern Europe, where allies are seeking to acquire weapons that Ukraine has successfully used against Russian forces, two people familiar with the request said, including Stinger anti-aircraft missiles and Javelin anti-tank missiles.

The requests come as countries in Europe increase defense budgets to meet an increasingly uncertain security outlook, with Germany, Sweden and Denmark promising dramatic increases in spending. More

European allies are “doubling” their defense spending, Pentagon Assistant Secretary of Defense Mara Karlin said last week after a congressional hearing in which she spoke of “Russian aggression that threatens the territorial integrity of Europe.”

Since the sale of weapons by US contractors to foreign governments requires US approval, the Pentagon Security and Defense Administration is holding weekly meetings of its European Crisis Management Team to address specific requests related to the current situation in Ukraine, the source said.

To expedite US government approval of the sale and transfer of weapons manufactured by US defense contractors, the Pentagon has re-established a team to respond to increased demand. More

“The Department of Defense is exploring options to support Ukraine’s needs, quickly replenish U.S. supplies, and replenish depleted stocks of allies and partners,” a senior Defense Department official said, adding that the Pentagon is working with contractors on ways to “easing supply chain restrictions.” i) speed up the production time.

Raytheon Technologies (RTX.N) and Lockheed Martin Corp (LMT.N) jointly produce the Javelins, while Raytheon makes the Stinger. The possibility of growth in sales of all types of weapons since the beginning of the invasion on February 24 lifted Lockheed shares by 8.3%, and Raytheon shares by 3.9%.

Raytheon chief executive Tom Laliberti said the company recognizes the “urgent need to restock Javelin and Stinger.”

Any significant shift towards the United States as a supplier is likely to provoke a backlash from Europe’s fragmented defense industry.

The head of Dassault Aviation (AM.PA) earlier this month criticized Germany’s decision to order the F-35, saying it could dampen support for joint projects such as the Franco-German FCAS fighter shared by Dassault and Airbus. More

Germany is also looking into US-made missile defense systems, such as the Terminal High Altitude Air Defense (THAAD), although they are not a favorite in terms of procurement, the source said. An opposition politician, for example, asked about buying a short-range interceptor missile called the Iron Dome to defend Berlin. Deciding what to buy is at an early stage.

A spokesman for the German Defense Ministry declined to comment.

It was expected that Germany would already decide on a new heavy-lift helicopter this year, which could lead to higher costs. Competitors in the deal worth around €4 billion are Lockheed Martin’s CH-53K King Stallion and Boeing’s (BA.N) H-47 Chinook.

Poland wants to purchase several MQ-9 Reaper drones manufactured by General Atomics, including under a special, accelerated procedure, and plans further purchases later, Lt. Wednesday.

“This order is a response to the security situation, especially in Central and Eastern Europe,” Platek said.

Typically, U.S. defense deals take years of negotiation, approval, and vetting after countries have spent up to several years deciding on their needs.

Reporting by Mike Stone in Washington; Andreas Rinke in Berlin; Alicia Ptak in Warsaw; Editing by Chris Sanders and Mark Porter

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