Despite the Pentagon’s high-profile weapons transfers to Ukraine, Raytheon, a leading defense contractor, is still awaiting orders to replenish the donated missile and bomb stockpiles. The company has currently received $2 billion in replenishment orders and anticipates a further $2.5 billion within the next year. This replenishment is crucial, as the Pentagon is urging defense firms to increase their munitions production to both replace what has been sent to Ukraine and to augment U.S. stockpiles.
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Key Points:Â
- The Pentagon has transferred about $30 billion worth of weapons to Ukraine, of which Raytheon has only received $2 billion in replenishment contracts.
- Raytheon’s CEO, Greg Hayes, expects $2.5 billion in additional replenishment orders within the next year.
- The Pentagon is pushing for defense companies to expand munitions production to replenish donations made to Ukraine and build up U.S. stockpiles.
- Some of Raytheon’s weapons, including the Stinger heat-seeking missile and Javelin anti-tank missile, have been crucial in helping Ukraine counter the initial Russian invasion, leading to increased global demand from U.S. allies.
- The Pentagon and Raytheon are advocating for multi-year procurement contracts to speed up stockpile replenishment and offer cost savings, but have encountered “institutional resistance” within the Pentagon.
