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World 14/12/2020 SIPRI releases 2019 Arms and Military Services Sales Report
SIPRI releases 2019 Arms and Military Services Sales Report

Tashkent, Uzbekistan (UzDaily.com) -- The Stockholm Peace Research Institute (SIPRI) has published a report “On sales of weapons and military services of the 25 largest defense concerns in 2019”.

SIPRI is an international peace and conflict research institute based in Stockholm, Sweden. It is engaged in research on conflicts, armaments, arms control and disarmament. It is considered one of the most authoritative sources of information on international military spending.

According to SIPRI, in 2019, the 25 largest arms companies in the world earned US$361 billion from the sale of weapons and military services, which is 8.5% more than in 2018, and 15% more than in 2015.

12 American companies occupy the first place with 61% of world arms sales. The 5 largest arms manufacturers Lockheed Martin, Boeing, Northrop Grumman, Raytheon and General Dynamics recorded sales of US$166 billion.

China ranks second in the world arms trade with a more modest share of 16%. 4 Chinese companies increased their sales in one year by 4.8%. Wherein 3 Chinese manufacturers entered the top ten: Aviation Industry Corporation of China (AVIC, 6th), China Electronics Technology Group Corporation (CETC, 8th) and China North Industries Group Corporation (NORINCO, 9th).

As the German Tagesschau writes, referring to the SIPRI researchers, "Chinese arms companies receive significant benefits from sales in their country by investing in the PLA's military modernization programs."

The third largest arms dealer is Russia. The list includes only 2 Russian arms manufacturers - Almaz-Antey and the United Shipbuilding Corporation. Their revenues decreased by US$634 million in aggregate, having halved from 8.6% to 3.9%, Kommersant notes.

SIPRI researchers explain the ratings of Russian and Chinese companies by “limited international presence”, including due to the sanctions policy of the West.

In this context, the German TV channel Das Erste quotes the words of a SIPRI employee asserting that the modernization of the Russian army has slowed down due to the general economic situation in the country, which has affected the decrease in orders from the Russian government.

Only 18% of the world income from the sale of weapons was received by the 6 largest Western European companies. At the same time, German companies were not even included in the top 25 of the ranking, emphasizes the German Tagesschau. On the 14th place in the SIPRI list is the French concern Thales, which together with Airbus has the widest geography of supplies and is represented in 24 countries. The 17th position is taken by the Dassault concern, to which the supply of Rafael combat aircraft in 2019 allowed it to rise from the 38th place in the rating.

For the first time, a company from the Middle East - EDGE, created in the UAE in 2019 through the merger of about 25 small firms, was in the group of sales leaders. It ranked 22nd with a 1.3% sales share. "EDGE is a good example of how the combination of strong national demand for military products and services with the desire to reduce dependence on foreign suppliers is becoming a driving force for military companies in the Middle East," the SIPRI report said.

The geography of presence of the largest military-industrial companies outside their national borders in 2019 included 49 countries, where they are represented through subsidiaries, joint ventures and research centers. At the same time, it was noted that in Russia and China, military production strategies are limited by the policy of governments, which attach the main importance to the development and production of weapons on their territory.

At the same time, as some publications note, criticism from individual organizations and politicians is growing in response to the growth of world arms spending.

For example, the environmental organization Greenpeace is calling for a "radical rethinking" of the huge costs of weapons in the face of a pandemic, climate change and environmental pollution. "This is a scandal when the sales of the 25 largest arms companies in the world are growing, and there is not enough money for a sustainable fight against hunger," Das Erste quotes the Secretary General of the International Organization for Relief of Hungry for the World.

In general, as experts note, the growth in defense spending reflects the tension in international politics, where military force is increasingly coming to the fore. The largest arms companies in the world spend huge amounts of money on the media and promoting their products. And analytical publications often skillfully substantiate the advisability of solving international problems by military means.

 

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