Putin is in a panic as British armaments prepare to defend Russia against fresh Cold War incursions.
The biggest defense company in the UK is anticipating a rush of orders from Eastern Europe as Vladimir Putin fuels fears of an invasion.
As Eastern European nations are on high alert due to the conflict in Ukraine, BAE is now in discussions with clients on how to increase missile and munitions production. The business offers a variety of munitions, explosives, gun systems, and artillery systems, many of which have been purchased to replace weaponry that was originally provided from Europe to Ukraine as lethal aid.
Due to the war, the business already posted astonishing profits, and as the fighting continues, BAE is now anticipating even more orders to come in.
In addition to higher orders from “clients around the world,” BAE anticipates increased demand from the Ministry of Defense.
According to Dr. Charles Woodburn, Chief Executive Officer of BAE, conversations with these clients will necessitate “increasing capacity across a broad suite of weapons” for the business.
It follows the company’s better-than-anticipated £1.1 billion in half-year profits, an increase of 8% from the prior year.
Additionally, BAE saw a rise in orders of £18 billion, or 70%, in the first half of the year.
The majority of such increases came from orders for typhoon planes and existing programs like its Dreadnought nuclear ballistic submarines.
Since Putin’s ruthless invasion of Ukraine began in mid-February, the price of the company’s shares has increased by more than 30%.
According to BAE’s most recent figures, the order backlog increased to £52.7 billion.
However, other clients could gain from the European nations sending over lethal aid to Ukraine as BAE’s weapons replace their stocks.
“I think there is more to come,” Mr. Woodburn added. It has brought the higher threat environment back to our political leaders’ attention in light of the incredibly tragic events in Ukraine.
It happens as NATO gets ready to increase the number of troops stationed along its borders with Russia starting in 2023.
And BAE might be a big part of arming those forces.
The Czech Republic said last week that it has authorized negotiations for its CV90 combat vehicles with BAE Systems Hägglunds, the company’s Swedish subsidiary.
According to reports, Slovakia is also in talks with BAE to purchase weapons.
It follows NATO’s announcement that it will increase the number of troops on high alert by more than 700%, to 300,000.
According to a story in the Financial Times, NATO Secretary General Jens Stoltenberg said that the new military strategy would significantly strengthen the alliance’s eastern defenses.
I can guarantee you that we have been able to safeguard Russia’s surrounding nations for many years by modifying our presence in accordance with threat assessments. We have previously done that and will do so once more.
The new strategies represent a return to NATO’s previous preparations for the possibility of a Soviet invasion.
Nations on NATO’s eastern front have continued to use outdated Soviet-era weapons since the collapse of the Soviet Union.
But now, it seems that nations like Poland, Hungary, Romania, and the Baltic states are replacing this arsenal.
“There are East European Governments, and I don’t mean Ukraine, who are now purchasing western equipment after growing up with Warsaw Pact equipment. They need help understanding how to support and operate that, and that’s the kind of thing we do in the UK,” said David Lockwood, chief executive of British defense contractor Babcock.
They may now be receiving training to use additional British weapons that may shortly be arriving. It follows BAE’s announcement that the sale of Eurofighter Typhoon jets to Spain had increased its revenue by £500 million.
The NATO Eurofighter and Tornado Management Agency (NETMA) has signed a contract for the purchase of 20 new Typhoon fighters for the Spanish Air Force. Due to its participation in the production of numerous Typhoon component parts, BAE Systems stands to gain from the agreement.
The UK has already given Ukraine deadly aid worth £2.3 billion.
Numerous next-generation light anti-tank weapons, hundreds of short-range Brimstone missiles, M270 multiple-launch rocket systems with M31A1 precision munitions, and thousands of other weapons were donated.