Blood Money

Additional military assistance for Ukraine is at a standstill in Congress, and the recent death of Alexei Navalny, a prominent critic of Putin, has heightened the urgency to address Russia.

Proponents of providing arms to Ukraine are employing a new persuasive strategy: they assert that aiding Ukraine would significantly benefit the American economy.

During the Munich Security Conference, German Defense Minister Boris Pistorius informed Bloomberg that supplying weapons to Ukraine would generate more business for US defense contractors and safeguard a profitable US-Europe trading relationship threatened by Putin's aggression.

Moreover, President Biden's top economic adviser, Lael Brainard, emphasized the importance of funding for Ukraine in terms of employment and production across the country.

This support is framed as an "investment" rather than mere "aid."

According to the Biden administration, out of the $61 billion designated for Ukraine, 64% would circulate back to US defense contractors manufacturing the weapons.

Notably, since Russia's invasion of Ukraine almost two years ago, industrial production in the US defense and space sector has increased by 17.5%, as reported by the Fed.

This surge reflects not only orders from the Pentagon but also from European governments purchasing new military equipment and replenishing inventory sent to Ukraine.

Poland has placed orders worth $30 billion for Apache helicopters, M1A1 Abrams tanks, and other gear.

Similarly, Germany has committed to purchasing 35 F-35A Lightning jets from Lockheed Martin and 60 Chinook helicopters from Boeing, totaling nearly $20 billion.

It remains uncertain whether these economic arguments will persuade House Speaker Mike Johnson to address the foreign aid bill. While the bill has cleared the Senate, it encounters opposition from some House members aligned with Trump, who are hesitant to allocate further funds to Ukraine. With lawmakers on winter break for the next two weeks, no progress is expected during this period.

“There have always been wars. The peacemakers have to make a living out of something.”
― Ljupka Cvetanova, The New Land