Slovak arms firms see profits quadruple since Ukraine war

Slovakia’s key armament companies quadrupled their profits last year compared to the previous one, with companies confirming their extraordinary results were due to the war in Ukraine.

Slovakia’s 17 most important domestic armouries saw sales increase by 51% last year, going from €262 to €396 million, according to an analysis of those companies’ profits, Denník E reports.

Profits for these companies grew even more significantly, with cumulative values quadrupling from €11 million to €49 million – meaning business had become far more profitable last year than ever before.

“The products of the Slovak defence industry have their quality, and their competitiveness on the international market is constantly increasing, even with the contribution and support of the Slovak Defence Ministry,” said the state secretary of the department, Marián Majer.

In their annual reports, several armaments companies confirm that their extraordinary results had been reached due to the increased interest in weapons after Russia attacked Ukraine.

Ammunition plants like the one in Nováky were very successful due to Ukraine’s increased demand for ammunition. The same can be said for the Konštrukta-Defence state armoury from Dubnica nad Váhom, which ensures the assembly of Slovak Zuzana 2 self-propelled howitzers deployed in Ukraine. It is also the primary contractor for the supply of 8×8 Patria vehicles for the Slovak army.

Slovak ammunition plants were visited by EU Internal Market Commissioner Thierry Breton during his Defence Tour in March when he confirmed he was ‘very impressed’ by the plant’s ‘ironclad’ plan to increase ammunition production two or threefold.

According to analysts, the biggest risk for the Slovak Defence Industry is the upcoming September parliamentary elections.

If candidates of relatively pro-Russian parties currently leading in the polls take control of the Defence Ministry, they could well replace the management of state companies and later even end cooperation with Ukraine altogether.

(Lucia Yar | EURACTIV.sk)