Israeli defense companies expect a significant rise in sales following the security crisis unleashed by Russia’s invasion of Ukraine, Globes reported on Thursday.
“Russia’s invasion of Ukraine has shaken Europe and had a dramatic effect on military procurement. Germany alone has increased defense expenditure by 33% or 2% of GDP, representing 1 billion euros in extra orders annually,” the report noted.
The marketing of Israeli defense systems will be conducted “proactively by contacting the military of countries and offering systems at exhibitions and events. Expectations are that sales could rise by several hundred million dollars annually,” according to the report.
“German Chancellor Olaf Scholz has already announced that Germany will buy combat drones. These weapons have already proven their worth in Azerbaijan’s victory over Armenia in the Second Nagorno Karabakh War and in the civil war in Yemen,” it stated.
Germany currently leases five Heron drones from Israel Aerospace Industries.
Other NATO members are expected to boost military procurement programs as well, including Eastern European countries directly threatened by Russian aggression or Western European states seeking to recreate deterrent capabilities against Moscow.
Drones and loitering munitions are expected to be key focus areas, according to the report.
It also noted that the Turkish-made Bayraktar UAV, which is being used by Ukraine with great effect against Russian forces, has demonstrated the critical need for such weapons.
“Sources familiar with the weapons systems market anticipate brisk orders for a range of advanced systems, but for the most part, it will be for drones and loitering munitions. Attack drones like the Heron will be preferred, but loitering munitions demonstrated their success for Azerbaijan,” it said, noting that IAI’s Harop is one of the most popular loitering munitions systems.