The Biden administration this week introduced financial sanctions concentrating on the Russian and Belarusian protection industries in response to the invasion of Ukraine.
Among the many entities focused is Novikombank, a financial institution that “primarily operates within the Russian protection sector and serves because the core monetary establishment for Russian protection firm Rostec, which absolutely owns the financial institution,” based on the U.S. Treasury Division. Rostec is the state-owned holding firm that makes investments in Russia’s protection and tech sectors.
The U.S. additionally sanctioned the Minsk Wheeled Tractor Plant, often known as MZKT, which makes armored autos that carry Russian surface-to-air missiles. “It sells its merchandise globally on behalf of the Lukashenka regime, together with car chassis which might be exported to Iran and Russia, the latter of which locations common orders with MZKT to be used in Russia’s protection sector,” the Treasury Division mentioned in an announcement.
Right here’s the total listing of Russian and Belarusian sanctions from the Treasury Division.
Some U.S protection firms may additionally find yourself in the course of the sanctions, particularly people who supply titanium from Russia or promote plane components to Russian planemakers. Learn extra about that right here.
And in different sanction-related information, China sanctioned Raytheon Applied sciences and Lockheed Martin over a $100 million deal to keep up Taiwan’s missile defenses.
In the meantime, Delta Air Traces has reduce ties with Aeroflot, Politico’s Betsy Woodruff Swan and Oriana Pawlyk report.
There’s a brand new Protection Division provide chain report out. “It focuses particularly on addressing challenges in high-priority areas important to operational readiness, together with kinetic capabilities, vitality storage and batteries, castings and forgings, microelectronics, and strategic and important supplies,” the Pentagon mentioned. “The division additionally highlights a set of strategic enablers that underpin general mission success and provide chain resilience, equivalent to workforce, cyber posture, small enterprise, and manufacturing capabilities.”
Whereas we’ve but to listen to a single U.S. Protection Division official articulate the Pentagon’s mergers and acquisition coverage, CEOs proceed to see massive M&A being off the desk following the Biden administration torpedoing Lockheed’s $4.4 billion acquisition of Aerojet Rocketdyne. “I believe it is arduous to do M&A,” Raytheon Applied sciences CEO Greg Hayes mentioned this week at a Barclays funding convention. “Right now, I believe…with the Biden administration and the FTC taking a number of the positions. I believe it is unlikely that there is going to be an enormous urge for food to do any additional consolidation within the A&D business.”
Reminder, United Applied sciences and Raytheon merged in 2020—a deal that many analysts and observers imagine the Biden administration would have tried to dam. “I believe our timing was fortuitous,” Hayes mentioned.
Nonetheless, Raytheon sees itself doing what Hayes referred to as “fill-in M&A” to the tune of about $1 billion every year. Hayes additionally mentioned Raytheon would look to divest “a few companies” inside its Collins Aerospace division “that I believe do not match.”
“I do not need to give these companies away,” he mentioned. “We need to be sure that they’re good, strong companies, and that we will get full and truthful worth for them. And if we will not, we’ll maintain them.”
From Protection One
The nation performs a small however necessary function in each provide chains and gross sales.
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DOJ’s Lisa Monaco warns business to harden defenses; Ukraine’s overseas weapons methods are a possible goal for Russian hackers.
Russia’s advances are encountering extra resistance than anticipated, U.S. protection official says, as forces encircle Kyiv.
The White Home additionally introduced sanctions to restrict Russia’s entry to cutting-edge applied sciences.
Moscow does not want troops and roadblocks to isolate a goal nation.
Rome appears glad to contribute greater than their share of floor troops and jets to NATO missions—so long as they will do it sotto voce.