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FX.co ★ Defense system sales rocketing amid Ukrainian crisis

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Forex Humor:::2014-05-19T08:33:00

Defense system sales rocketing amid Ukrainian crisis

While the largest corporations in the countries affected by the Ukrainian unrest are threatened with sales reduction, certain companies, on the contrary, expect their sales to boom amid the escalating geopolitical tensions. No wonder, the defense sector including military aircraft industry, aerospace engineering, and naval shipbuilding will enjoy highly robust activity. Lockheed Martin, one of the largest global U.S. defense contractors, forecasts that the Ukrainian crisis will boost sales of its missile defense system MEADS and other products developed by the corporation. “We see strong demand for defense systems in the world. Here in Europe it is for missile defense systems. Many of our NATO partners are also looking at our F-35 fighter jet program," CEO Marilyn Hewson told in the interview. She also noted that there are about 20 new clients for its Medium Extended Air Defense System (MEADS) across the world. Since the unrest broke out in Ukraine, it has made neighbor countries reinforce their defense power. MEADS is a mobile system designed to defeat tactical ballistic and cruise missiles as well as unmanned aerial vehicles and aircraft. So, it is a costly and sophisticated order. Recently, governments of numerous countries have been interested in such a medium-range air defense system. The American design is considered to be the best in the niche. It should be reminded that earlier Lockheed Martin and Boeing founded the joint venture United Launch Alliance which produced expendable launch vehicles. United Launch Alliance bought RD-180 engines from RD-Amros, the Russian-American company. As a result, the partnership created a monopoly on the launcher market in favor of U.S. military satellites. Later on, the U.S. federal court banned United Launch Alliance to purchase such vehicles for putting into orbit military satellites.

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