Russia and Ukraine are running out of munitions – but one has a significant advantage | Sean Bell

Published

1 year ago

January 6, 2024

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Despite Russia having significantly greater firepower, its illegal invasion of Ukraine has not gone according to plan.

Although Ukraine was not a member of NATO, the West responded to President Volodymyr Zelenskyy’s appeal for help with a mass of hi-tech weapons and ammunition.

However, following nearly two years of high-intensity conflict, both sides are running out of munitions.

Ukraine-Russia war – latest updates

Inspired by Ukraine’s initial successes at liberating 12,000 sq km of occupied Kharkiv in September 2022, the West provided a huge volume of military supplies to support Mr Zelenskyy’s spring offensive.

However, despite months of intensive fighting, the frontlines have not moved significantly, and both sides need more firepower to prevail.

No nation holds sufficient war stocks of ammunition to meet the demands of such a high-tempo war of attrition. Russia has always stockpiled basic weapons and is believed to have started the war with several million artillery shells – however, even these stocks are now running low.

Ukraine could not match Russia’s weapons stockpiles, but Western support focused on hi-tech weapons that provided Ukraine with precision strike capability.

But these Western weapons came from existing stockpiles, and no nation has the luxury of holding more weapons than it needs. Because of this, every weapon donated to Ukraine increased the national security risk for the donor nation.

By donating “older stocks” of weapons, the West judged that the cost and risk implications were manageable, but the supply was – inevitably – limited.

To address the firepower shortfall, Russia has turned to North Korea to supply ballistic missiles and one million artillery shells, and repeat orders can be expected.

Iran is happy to supply drones and larger missiles, which might not be as capable or effective as their Western counterparts, but crucially they are available now. And Russia has a huge defence industrial base which has shifted on to a war footing, funded by huge oil revenues. Russia is rearming, and fast.

In contrast, Ukraine has a fledgling industrial base which is very vulnerable to Russian missile attacks – it takes months to build manufacturing capability, and a single strike by Russia to destroy it. Ukraine hopes to build one million drones this coming year, but it cannot match Russia’s defence industry’s capacity or capability, and it does not have the weapons to threaten Russia’s industrial base.

Ukraine’s GDP is also a fraction of the size of Russia’s – £157bn versus nearly £1.6trn – so it cannot compete with Russia’s global purchasing power or national defence industrial capability.

So where does that leave Ukraine? Without considerable and enduring Western military support, it is destined to become overwhelmed – eventually – by Russia’s considerably greater ability to rearm.

Denuded Western stockpiles cannot meet Ukraine’s needs, but the West does have considerably greater capacity to mobilise its defence industrial base if it chooses to do so.

Earlier last year, the West promised Ukraine it would provide a million rounds of artillery by March 2024. Although Western industry has the capacity to respond, this promise will not be kept.

Western political support for Ukraine remains robust, but this intent has yet to be matched by the requisite collective financial commitment.

Western defence planning assumed that high-intensity enduring wars were unlikely to be a near-term issue, and that technology would provide it with an asymmetric military advantage.

However, specialist weapons are expensive and can only be procured in relatively small numbers. And they cannot be easily replaced as the production lines only remain open until orders are fulfilled, and the technology is rapidly obsolete.

Mr Zelenskyy has always claimed that he is fighting Russia on behalf of the West, without it having to commit combatants. But Ukraine cannot prevail without military (and financial) help.

An emboldened Putin might not be a threat beyond Ukraine’s shores in the very near term, but a victory in Ukraine would inevitably have long-term consequences. And what would China – with its eye on Taiwan – make of such a victory?

The Ukraine war has exposed some critical shortcomings of the West’s wartime assumptions. Unless it commits to a coordinated long-term strategy to generate the weapons Ukraine needs – and urgently – it will hand Putin the victory he craves.

World

Financial markets were always going to respond to Trump tariffs but they’re also battling with another problem

Published

4 hours ago

April 4, 2025

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Financial markets were always going to respond to Trump tariffs but they're also battling with another problem

Global financial markets gave a clear vote of no-confidence in President Trump’s economic policy.

The damage it will do is obvious: costs for companies will rise, hitting their earnings.

The consequences will ripple throughout the global economy, with economists now raising their expectations for a recession, not only in the US, but across the world.

Tariffs latest: FTSE 100 suffers biggest daily drop since COVID

Financial investors had been gradually re-calibrating their expectations of Donald Trump over the past few months.

Hopes that his actions may not match his rhetoric were dashed on Wednesday as he imposed sweeping tariffs on the US’ trading partners, ratcheting up protectionism to a level not seen in more than a century.

Markets were always going to respond to that but they are also battling with another problem: the lack of certainty when it comes to Trump.

He is a capricious figure and we can only guess his next move. Will he row back? How far is he willing to negotiate and offer concessions?

These are massive unknowns, which are piled on to uncertainty about how countries will respond.

China has already retaliated and Europe has indicated it will go further.

That will compound the problems for the global economy and undoubtedly send shivers through the markets.

Much is yet to be determined, but if there’s one thing markets hate, it’s uncertainty.

World

Court confirms sacking of South Korean president who declared martial law

Published

20 hours ago

April 4, 2025

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Court confirms sacking of South Korean president who declared martial law

South Korea’s constitutional court has confirmed the dismissal of President Yoon Suk Yeol, who was impeached in December after declaring martial law.

His decision to send troops onto the streets led to the country’s worst political crisis in decades.

The court ruled to uphold the impeachment saying the conservative leader “violated his duty as commander-in-chief by mobilising troops” when he declared martial law.

The president was also said to have taken actions “beyond the powers provided in the constitution”.

Supporters and opponents of the president gathered in their thousands in central Seoul as they awaited the ruling.

The 64-year-old shocked MPs, the public and international allies in early December when he declared martial law, meaning all existing laws regarding civilians were suspended in place of military law.

After suddenly declaring martial law, Mr Yoon sent hundreds of soldiers and police officers to the National Assembly.

He has argued that he sought to maintain order, but some senior military and police officers sent there have told hearings and investigators that Mr Yoon ordered them to drag out politicians to prevent an assembly vote on his decree.

His presidential powers were suspended when the opposition-dominated assembly voted to impeach him on 14 December, accusing him of rebellion.

The unanimous verdict to uphold parliament’s impeachment and remove Mr Yoon from office required the support of at least six of the court’s eight justices.

South Korea must hold a national election within two months to find a new leader.

Lee Jae-myung, leader of the main liberal opposition Democratic Party, is the early favourite to become the country’s next president, according to surveys.

World

Stock markets suffer sharp drops after Donald Trump announces sweeping tariffs

Published

21 hours ago

April 4, 2025

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Stock markets suffer sharp drops after Donald Trump announces sweeping tariffs

Stock markets around the world fell on Thursday after Donald Trump announced sweeping tariffs – with some economists now fearing a recession.

The US president announced tariffs for almost every country – including 10% rates on imports from the UK – on Wednesday evening, sending financial markets reeling.

While the UK’s FTSE 100 closed down 1.55% and the continent’s STOXX Europe 600 index was down 2.67% as of 5.30pm, it was American traders who were hit the most.

Trump tariffs latest: US stock markets tumble

All three of the US’s major markets opened to sharp losses on Thursday morning.

By 8.30pm UK time (3.30pm EST), The Dow Jones Industrial Average was down 3.7%, the S&P 500 opened with a drop of 4.4%, and the Nasdaq composite was down 5.6%.

Compared to their values when Donald Trump was inaugurated, the three markets were down around 5.6%, 8.7% and 14.4%, respectively, according to LSEG.

Worst one-day losses since COVID

As Wall Street trading ended at 9pm in the UK, two indexes had suffered their worst one-day losses since the COVID-19 pandemic.

The S&P 500 fell 4.85%, the Nasdaq dropped 6%, and the Dow Jones fell 4%.

It marks Nasdaq’s biggest daily percentage drop since March 2020 at the start of COVID, and the largest drop for the Dow Jones since June 2020.

‘Trust in President Trump’

White House press secretary Karoline Leavitt told CNN earlier in the day that Mr Trump was “doubling down on his proven economic formula from his first term”.

“To anyone on Wall Street this morning, I would say trust in President Trump,” she told the broadcaster, adding: “This is indeed a national emergency… and it’s about time we have a president who actually does something about it.”

Later, the US president told reporters as he left the White House that “I think it’s going very well,” adding: “The markets are going to boom, the stock is going to boom, the country is going to boom.”

He later said on Air Force One that the UK is “happy” with its tariff – the lowest possible levy of 10% – and added he would be open to negotiations if other countries “offer something phenomenal”.

Economist warns of ‘spiral of doom’

The turbulence in the markets from Mr Trump’s tariffs “just left everybody in shock”, Garrett Melson, portfolio strategist at Natixis Investment Managers Solutions in Boston, told Reuters.

He added that the economy could go into recession as a result, saying that “a lot of the pain, will probably most acutely be felt in the US and that certainly would weigh on broader global growth as well”.

Meanwhile, chief investment officer at St James’s Place Justin Onuekwusi said that international retaliation is likely, even as “it’s clear countries will think about how to retaliate in a politically astute way”.

He warned: “Significant retaliation could lead to a tariff ‘spiral of doom’ that could be the growth shock that drags us into recession.”

It comes as the UK government published a long list of US products that could be subject to reciprocal tariffs – including golf clubs and golf balls.

Running to more than 400 pages, the list is part of a four-week-long consultation with British businesses and suggests whiskey, jeans, livestock, and chemical components.

Meanwhile, Prime Minister Sir Keir Starmer said on Thursday that the US president had launched a “new era” for global trade and that the UK will respond with “cool and calm heads”.

It also comes as Canadian Prime Minister Mark Carney announced a 25% tariff on all American-imported vehicles that are not compliant with the US-Mexico-Canada trade deal.

He added: “The 80-year period when the United States embraced the mantle of global economic leadership, when it forged alliances rooted in trust and mutual respect and championed the free and open exchange of goods and services, is over. This is a tragedy.”