Slovak arms companies quadruple profits amid Russian-Ukrainian war

A review of Slovakia's primary domestic weapons producers reveals a 51% sales rise in 2022 compared to 2021, totaling €396 million, as reported by Slovak media Dennik E.

Profits of these firms surged dramatically, skyrocketing from €11 million to €49 million, underscoring the notably higher profitability of weapon production.

The firms' annual reports indicate that heightened interest in weaponry following Russia's Ukraine invasion drove their notable achievements. This is particularly evident in ammunition manufacturers like the Nováky facility, which has flourished due to escalated demand in Ukraine.

The EU hailed the impressive capacity of Slovak weapons makers to double or triple ammunition production, with EU Internal Market Commissioner Thierry Breton highlighting the importance of bolstering defense spending in member states.

However, analysts express concerns about the upcoming September elections, with the pro-Russian Smer party poised to potentially gain power. This could lead to reshuffling state-owned enterprise management, jeopardizing collaborations and arm manufacturing contracts. This may also impact Slovakia's role in producing munitions for Ukraine and EU stockpiles via the EU budget.

Earlier this year, EU members sanctioned a €2 billion scheme to supply ammunition from their reserves and place joint orders for shell production. The objective is to furnish Ukraine with one million rounds of ammunition in a year.

On March 20, the European Union Council endorsed a plan to deliver one million artillery ammunition to Ukraine over a year, manufactured by EU-based arms producers.