Eastern Europe
Arms companies of Eastern Europe boost production for Ukrainian supply
Eastern European arms companies are producing guns, missiles, and other weapons not seen since the Cold War, as governments across Eastern Europe making efforts to help save Ukraine in its fight against Russia.
The Allies have been supplying Kyiv with weapons and ammunition since Russia attacked its neighbor on February 24, destroying their assets. The Kiel Institute for Global Economic Monitoring showed that the United States and Britain provided direct military aid to Ukraine between January 24 and October 3. Poland ranked third and the Czech Republic ninth.
Some former Warsaw Pact countries still distrust Russia, their Soviet-era ruler, and see aid to Ukraine as a regional security issue. But a dozen government officials, companies, and analysts who spoke to Reuters said the conflict also provided new opportunities for the region’s arms industry.
“Given the reality of the ongoing war in Ukraine and the visible situation of many countries increasing their budgets in the area of defense budgets, there are good opportunities to enter new markets and increase export earnings in the coming years is coming,” he said. Sebastian Chwalek, CEO of PGZ Poland.
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The state-owned PGZ, according to the latest data, controls more than 50 companies that produce weapons and ammunition – from armored personnel carriers to unmanned aerial systems – and has shares in dozens. Chwalek told Reuters he plans to invest over 8 billion zlotys ($1.8 billion) over the next decade, more than double his pre-war goals.
He said that includes a new facility far from its border with Russia-aligned Belarus for security reasons. Other manufacturers are increasing their production capacity and rushing to hire workers, companies, and workers from Poland, Slovakia, and the Czech Republic.
Immediately after the Russian invasion, some Eastern European forces and manufacturers began dismantling Soviet-era warehouses and weapons familiar to Ukraine, while Kyiv waited for standard equipment from Western NATO.
As these stocks dwindled, gun makers increased production of old and new equipment to keep up with the supply. The influx of weapons helped Ukraine drive out Russian forces and regain much of its territory.
