Why Washington Is Boosting Heavy Arms for Ukraine

President Joe Biden and Chairman of the Joint Chiefs of Staff Gen. Mark Milley listen during a meeting with military leaders in the Cabinet Room the White House, Wednesday, April 20, 2022, in Washington. (AP)
President Joe Biden and Chairman of the Joint Chiefs of Staff Gen. Mark Milley listen during a meeting with military leaders in the Cabinet Room the White House, Wednesday, April 20, 2022, in Washington. (AP)
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Why Washington Is Boosting Heavy Arms for Ukraine

President Joe Biden and Chairman of the Joint Chiefs of Staff Gen. Mark Milley listen during a meeting with military leaders in the Cabinet Room the White House, Wednesday, April 20, 2022, in Washington. (AP)
President Joe Biden and Chairman of the Joint Chiefs of Staff Gen. Mark Milley listen during a meeting with military leaders in the Cabinet Room the White House, Wednesday, April 20, 2022, in Washington. (AP)

Eight weeks into the war, the Biden administration's decision to dramatically ramp up delivery of artillery guns to Ukraine signals a deepening American commitment at a pivotal stage of fighting for the country's industrial heartland.

It also brings into stark relief Moscow's warning that continued US military aid to Ukraine would have "unpredictable" consequences, suggesting that Russia sees the international wave of weaponry as a growing obstacle to its invasion as well as a Western provocation.

"We're in a critical window" of time now, President Joe Biden said Thursday in announcing he had approved an additional $800 million in battlefield aid that includes 72 of the US Army's 155mm howitzers, along with 144,000 artillery rounds and more than 120 armed drones that will require training for Ukrainian operators.

This brings to $3.4 billion the amount of security assistance provided since Russia began its invasion Feb. 24. That is an extraordinary total of US military aid for a country to which the United States has no defense treaty obligation.

A look at the US assistance and US expectations for what it will accomplish:

Why is artillery so important now?

Heavy weapons such as artillery are shaping up as a key feature of the unfolding battle for Ukraine's eastern region known as the Donbas. The relatively flat terrain is suited for what the military calls maneuver warfare - the movement of tanks and other ground forces backed by long-range guns like the 155mm howitzer.

The Russians have been deploying their own additional artillery to the Donbas region in recent days, along with more ground troops and other material to support and sustain what could be a long fight for terrain in Ukraine's industrial heartland.

The howitzers the US is sending to Ukraine will be the latest American model, known as the M777, used by the Army and the Marine Corps. Smaller and more maneuverable than the older model, the M777 can be deployed on the battlefield by heavy-lift helicopters and moved relatively quickly between positions by seven-ton trucks that also are being provided by the Pentagon.

"What makes it important is the kind of fighting that we expect in the Donbas. Because of the terrain, because it's open, because it's flat, because it's not as urban, we can expect the Russians to rely on long-range fires - artillery in particular," said John Kirby, the Pentagon press secretary. "So we know that this is going to be part of the Russians' playbook."

A senior US defense official said the first of the 72 howitzers are expected to begin moving to Europe by this weekend. Of 18 other 155mm howitzers that Biden approved last week for shipment to Ukraine, an unspecified number already are in Europe, and US howitzer training for Ukrainian personnel began Wednesday in an undisclosed country outside of Ukraine.

Will this be enough to hold off the Russian offensive?

Probably not, and Biden said he already has asked the Pentagon to get to work on additional potential military assistance.

Biden said this phase of Russia's invasion will be "more limited in terms of geography but not in terms of brutality." He also acknowledged that he needs Congress to approve the funds necessary to continue providing key weapons to Ukraine beyond the latest $800 million package, which he said would ensure a steady flow of arms only for the next few weeks.

US officials say the Russians are trying to adjust their approach in Ukraine after early setbacks, suggesting the fight could be a long one.

After failing to take Kyiv, the capital, in the early weeks of its multi-pronged invasion, Russia has since narrowed its objectives by focusing on the Donbas, where Moscow-backed separatists have been fighting since 2014, and on a stretch of coastal territory along the Sea of Azov from Mariupol to the Crimean Peninsula. One Russian advantage is this region´s proximity to Russian territory, which allows for shorter supply lines than earlier battles in Ukraine's north.

What else is the US providing?

In addition to the 72 howitzers and the vehicles required to move them around the battlefield, the new weapons package for Ukraine includes artillery rounds and armed drones from US Air Force stocks. Still in the pipeline from a separate $800 million weapons package announced only last week is a wide range of articles, including radars used to enable the targeting of Russian artillery, as well as air surveillance radars and unmanned coastal drone vessels.

"Artillery and drones are the exact things Ukraine will need as Russia heads into its next campaign in the East and South," said Mark Montgomery, a retired Navy rear admiral who previously served with US European Command in helping improve US-Ukrainian military relations. Montgomery is now an analyst at the Foundation for Defense of Democracies.

The drone included in the latest package is called the Phoenix Ghost, made by a US company, Aevex Aerospace, which bills itself as a leader in "full-spectrum airborne intelligence solutions." Kirby, the Pentagon spokesman, declined to describe the drone's capabilities beyond saying that it is used "largely but not exclusively to attack targets." It also has onboard cameras.

Kirby said the drones are especially well suited for the terrain on which the Ukrainians are fighting in the Donbas.



Iran's Revolutionary Guards Extend Control over Tehran's Oil Exports

Iranians drive as smog obscures the skyline in Tehran, Iran, 18 December 2024. EPA/ABEDIN TAHERKENAREH
Iranians drive as smog obscures the skyline in Tehran, Iran, 18 December 2024. EPA/ABEDIN TAHERKENAREH
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Iran's Revolutionary Guards Extend Control over Tehran's Oil Exports

Iranians drive as smog obscures the skyline in Tehran, Iran, 18 December 2024. EPA/ABEDIN TAHERKENAREH
Iranians drive as smog obscures the skyline in Tehran, Iran, 18 December 2024. EPA/ABEDIN TAHERKENAREH

Iran's Revolutionary Guards have tightened their grip on the country's oil industry and control up to half the exports that generate most of Tehran's revenue and fund its proxies across the Middle East, according to Western officials, security sources and Iranian insiders.

All aspects of the oil business have come under the growing influence of the Guards, from the shadow fleet of tankers that secretively ship sanctioned crude, to logistics and the front companies selling the oil, mostly to China, according to more than a dozen people interviewed by Reuters.
The extent of the Iranian Revolutionary Guard Corps' (IRGC) control over oil exports has not previously been reported.

Despite tough Western sanctions designed to choke Iran's energy industry, reimposed by former US President Donald Trump in 2018, Iran generates more than $50 billion a year in oil revenue, by far its largest source of foreign currency and its principal connection to the global economy.

Six specialists - Western officials and security experts as well as Iranian and trading sources - said the Guards control up to 50% of Iran's oil exports, a sharp increase from about 20% three years ago. The sources declined to be identified due to the sensitivity of the matter.

Three of the estimates were based on intelligence documents about Iranian shipping while others derived their figures from monitoring shipping activity by tankers and companies linked to the IRGC. Reuters was unable to determine the exact extent of the IRGC's control.

The IRGC's growing domination of the oil industry adds to its influence in all areas of Iran's economy and also makes it harder for Western sanctions to hit home - given the Guards are already designated as a terrorist organization by Washington.

Trump's return to the White House in January, however, could mean tougher enforcement of sanctions on Iran's oil industry. The country's oil minister said Tehran is putting measures in place to deal with any restrictions, without giving details.

As part of their expansion in the industry, the Guards have muscled in on the territory of state institutions such as the National Iranian Oil Company (NIOC) and its NICO oil trading subsidiary, according to four of the sources.

When sanctions hit Iran's oil exports years ago, the people running NIOC and the wider industry were specialized in oil rather than how to evade sanctions, added Richard Nephew, a former deputy special envoy for Iran at the US State Department.

"The IRGC guys were much, much better at smuggling, just terrible at oil field management, so they began to get a larger control of oil exports," said Nephew, who is now a researcher at Columbia University.
The IRGC, NIOC, NICO and Iran's foreign ministry did not respond to requests for comment.
RISK APPETITE
The IRGC is a powerful political, military and economic force with close ties to Supreme Leader Ali Khamenei.
The Guards exert influence in the Middle East through their overseas operations arm, the Quds Force, by providing money, weapons, technology and training to allies Hezbollah in Lebanon, Hamas in Gaza, Yemen's Houthis and militias in Iraq.
While Israel has killed a number of senior IRGC commanders over the past year, the oil specialists in its ranks have been able to continue their operations, two Western and two Iranian sources said.
The Iranian government began allotting oil, instead of cash, to the IRGC and Quds Force around 2013, according to Nephew.
The government was under budgetary pressure then because it was struggling to export oil due to Western sanctions imposed over Iran's nuclear program.
The IRGC proved adept at finding ways to sell oil even under sanctions pressure, said Nephew, who was actively involved in tracking Iranian oil activities then.
Iranian oil revenues hit $53 billion in 2023 compared with $54 billion in 2022, $37 billion in 2021 and $16 billion in 2020, according to estimates from the US government's Energy Information Administration.
This year, Tehran's oil output has topped 3.3 million barrels per day, the highest since 2018, according to OPEC figures, despite the Western sanctions.
China is Iran's biggest buyer of oil, with most going to independent refineries, and the IRGC has created front companies to facilitate trade with buyers there, all the sources said.
Oil export revenues are split roughly evenly between the IRGC and NICO, said one source involved in Iranian oil sales to China. The IRGC sells oil at a $1-$2 barrel discount to prices offered by NICO because buyers take a bigger risk buying from the Guards, the person said.
"It depends on a buyer's risk appetite, the higher ones will go for the IRGC, which the US designates as a terrorist group."
Two Western sources estimated that the IRGC offered an even bigger discount, saying it was $5 per barrel on average but could be as much as $8.
The oil is allocated directly by the government to the IRGC and Quds Force. It's then up to them to market and ship the oil - and work out a mechanism for disbursing the revenue, according to the sources and intelligence documents seen by Reuters.
NIOC gets a separate allocation.
CHINESE FRONT
One of the front companies used is China-based Haokun. Operated by former Chinese military officials, it remains an active conduit for IRGC oil sales into China, despite Washington hitting it with sanctions in 2022, two of the sources said.
The US Treasury said China Haokun Energy had bought millions of barrels of oil from the IRGC-Quds Force and was sanctioned for having "materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, the IRGC-QF".
In one oil transaction dated March 16, 2021 involving Haokun and parties including Turkish company Baslam Nakliyat - which is under US sanctions for its trading links to the IRGC - a payment was processed via US bank JP Morgan and Turkish lender Vakif Katilim, according to the intelligence documents.
The transaction took place before the companies were sanctioned. Reuters has no indication JP Morgan or Vakif Katilim were aware of the Iranian connection - highlighting the risks of companies getting inadvertently caught up in the shadow trade.
JP Morgan declined to comment. Vakif Katilim said in a statement: "Our bank performs its activities within the framework of national and international banking rules."
Haokun declined to comment. Baslam did not respond to a request for comment.
'GHOST FLEET'
Quds Force commander Qassem Soleimani, who was killed in a US strike in Baghdad in 2020, had set up a clandestine headquarters and inaugurated that year for the unit's oil smuggling activities, initially staffed by former oil minister Rostam Ghasemi, according to the intelligence documents.
Reuters could not determine where all the oil money funneled through the IRGC goes. The IRGC headquarters and day-to-day operations has an annual budget of around $1 billion, according to assessments from two security sources tracking IRGC activities.
They estimated that the IRGC budget for Hezbollah was another $700 million a year.
"Exact figures remain undisclosed, as Hezbollah conceals the funds it receives. However, estimates are that its annual budget is approximately $700 million to $1 billion. Around 70%-80% of this funding comes directly from Iran," Shlomit Wagman, former director general of Israel’s Money Laundering and Terrorism Financing Prohibition Authority, said separately.
Hezbollah did not respond to a request for comment.
The former Secretary General of Hezbollah, Hassan Nasrallah, who was killed in an Israeli airstrike, said Iran provided the group's budget, including for salaries and weapons.
Iran's main tanker operator NITC, which previously played a key role in exports, also now provides services to the IRGC.
It executes ship-to-ship transfers of Iranian oil onto vessels operated by the IRGC to ship crude into China, according to sources and ship-tracking data. Such transfers are common practice to help disguise the origin of the oil tankers carry.
NITC did not respond to a request for comment.
In August, Israel's National Bureau for Counter Terror Financing, part of the country's defense ministry, imposed sanctions on 18 tankers it said were involved in transporting oil belonging to the Quds Force.
In October, the US Treasury slapped sanctions on 17 separate tankers it said formed part of Iran's "ghost fleet", outside of NITC vessels. It followed up with sanctions on a further 18 tankers on Dec. 3.