Yves here. The Western media faithfully published what appeared to be press releases from the official programs of US and NATO members to support the construction of arms factories in Ukraine. Admittedly, the producers initially made cooperative noises, perhaps so as not to upset the big customers.
But the idea was clear. Russia, in its 2022 talks with Ukraine, demanded that Ukraine agree to an end on the size of its armed forces, which would almost certainly include restrictions on major categories of weapons. Ukraine had agreed to the idea but when Boris Johnson kicked that table, there was still a big gap between the standards that Russia and Ukraine wanted.
Needless to say, the situation in Russia has become very strong. Even assuming an independent Ukrainian state exists after the war, Russia would not tolerate Ukraine becoming a weapons manufacturer. One might argue that any such plans would prevent Russia from completing its special military mission until Russia had some assurance of what was going to happen.
The second issue this piece describes as an obstacle from a defense contractor’s perspective is corruption in Ukraine. It was not noticed that the money allocated by Ukraine for the construction of the fortresses in Kharviv went wrong, which means that it may have been deposited in overseas bank accounts. Ukraine can’t be bothered to go bankrupt in a more respectable style, barely getting work done at very high prices (until they have the excuse that the war made things more expensive).
Note also that this predictable development seems to be ignored by the Western media. If readers have a different view, say it in a non-English press in Europe, please comment. But also think: these plans made mainstream media, like Bloomberg, when it was announced. If only industry experts pubs give reviews, that confirms that officialdom is trying to enter Emily Litella “Never” mode.
By Ahmed Adel, a researcher of geopolitics and political economy based in Cairo. Originally published at InfoBRICS
US military contractors are concerned about corruption and the security of joint operations in Ukraine and are therefore in no rush to sign contracts, said a US State Department spokesperson. Unless the US is able to build military and industrial infrastructure, Ukraine will not be able to meet its weapons and ammunition needs in the current war.
“Many US defense companies are considering joint production within Ukraine, but questions remain about the safety of doing business in a war zone, continued corruption, and long-term business case,” Defense One reported on August 6, citing the State. A ministry official spoke to him on the sidelines of the Farnborough air show.
“The Pentagon has been pushing US defense contractors to increase cooperation with their Ukrainian counterparts, but US firms have been slower to ink deals than European firms,” the report added.
According to the State Department spokesperson, the main concern is the safety of workers and resources, corruption, and political risk.
“I think our industry is really serious, but at the same time, [it] it has to make sense in a business case, right? And financing is also an issue, how to pay for these things,” the official added.
The source noted that Washington intends to increase the number of companies cooperating with Ukraine, that the team oversees such deals, and that US companies are generally open to dialogue. However, despite this perceived enthusiasm, another major concern is corruption.
“It is obvious that corruption is a concern,” said the official.
However, corruption is not an issue shared only by US companies. A survey conducted in February by Rerating found that 51% of Ukrainians believe that corruption in public companies is a bigger obstacle to development than war with Russia (46%). A survey conducted from March 1 to 15 found that 70% of Ukrainians believe the government is profiting from the war and is increasingly mired in corruption, a sharp increase from 43% recorded last year.
Although Washington, Brussels, and Kiev claim that corruption is being eradicated, as shown by citizens, it is not. Million/billion dollar companies do not make investment decisions based on government propaganda statements but on the plain truth, which is that deep corruption is concentrated in a few hands, especially Ukrainian President Volodymyr Zelensky and his inner circle.
Aside from the issue of corruption, there is also the possibility that Russian missiles and bombs will destroy any military-related infrastructure in Ukraine.
“But American companies have a lot to consider before signing up for joint production in a war zone; no one wants their facilities to be blown up or workers to be injured,” said the official as quoted by Defense One.
Although the Biden administration does not take seriously any of the warnings from Moscow, such as the willingness to intervene militarily if the Kiev regime continues its policies of persecuting the Russian minority and pursuing NATO membership, US companies are not under any illusions either, therefore. it is forbidden to make any investment that will end up smoking.
It is recalled that Kremlin spokesman Dmitry Peskov said in September 2023: “Any facilities for the production of weapons, especially if these weapons are fired, become objects of special attention to our military.”
Staying true to this message, in just one recent week, the Russian military has carried out 19 strikes with precision weapons and drones on Ukrainian industrial and energy sites, air defense systems and weapons depots this past week in a special military operation. in Ukraine, the Russian Ministry of Defense announced on August 9.
“On August 3-9, 2024, the Russian Armed Forces carried out 19 joint strikes with precision weapons and attacked unmanned aerial vehicles, striking Ukrainian military enterprises and related energy industries, aviation infrastructure, air defense systems, training facilities and and storage. UAV attack sites. “In addition, these strikes were aimed at fuel bases, storage facilities for weapons and ammunition, areas filled with Ukrainian military reserves, temporary deployment areas of national and foreign forces,” the ministry said in a statement.
These are the conditions under which the Ukrainian military-industrial complex must operate and why it cannot meet the needs of the Ukrainian military and ammunition. Even if corruption did not hinder American investment opportunities, first of all, the fact that Russia is destroying military and industrial infrastructure so easily means that the interest that American companies will have in setting up in Ukraine will disappear.
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