Sirwin
Sirwin

The Businesses profiteering from the Ukrainian war

By Ptolemy | The Stock Market | 24 Mar 2023


With the Russia and Ukraine war already in its second year, and with no hopes in the tensions reducing, most of the entire world is suffering one way or another from this war.

For example, due to the lack of grain and wheat exports in Ukraine, many countries in Africa and Asia are suffering sever food shortages. With Western Europe, the banning of Russian energy had led to a energy crisis, with sky high prices of natural gas and electricity. And with no luck in stagnating.

The stock market in general has thus been suffering severely too, while a combo of Covid 19 and the war playing a part. It is estimated that major markets have fallen by approximately 10%.

However, a select few companies have in fact gained in share prices, even during the war. As a readers may already guess, it is the companies funding the war efforts on both sides. For example, as the West sends more and more weaponry and vehicles to Ukraine, the companies such as Lockheed Martin, General Dynamics Corp, and BAE systems have profited the most. All 3 of these companies, are a few of many weapons manufacturing companies, and are involved in the manufacture of aircraft, battery, guns and vehicles. 

General Dynamics, manufacturers of the M1 Abrams battle tank, has grown by over 12% in share price over the last 12 months, and continues to grow. And from the sales of F-35 fighter jets alone, Lockheed Martin have made a 27% revenue.

Now while some people will profit from these companies in the stock market, they may fail to recognise the moral issues investing in these types of businesses. Although investors may be funding Ukraine's effort to eliminate the threat of Russia, they could also perhaps lead to further killing and suffering out side of this war, in the new future, in places like Yemen and Syria.

 

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Ptolemy
Ptolemy

Essentially just a Crypto and Economics guru. Love politics too!


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