Pentagon Says It Made $3B Accounting Error In Ukraine Weapons Shipments

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Facts

  • The Pentagon said on Thursday that it had overestimated the value of weapons sent to Ukraine by at least $3B, meaning the Defense Dept. can ship more weapons to the country without asking Congress for additional funds.1
  • The announcement came as existing military aid allocations to Ukraine were on the verge of running dry. Biden admin. officials were expected to face resistance from Congress in approving new packages, namely due to debate over the debt ceiling, as well as established calls from some Republicans to slash the military aid to Ukraine over spending concerns.2
  • Pentagon officials said the error came due to officials using the cost of replacing a weapon rather than its current value, adding that the Pentagon often opted to send older weapons from existing stockpiles rather than new ones, because they could be delivered to Ukraine more quickly.1
  • Sabrina Singh, a spokesperson for the Pentagon, said that the dept. had "discovered inconsistencies" during an "oversight process of presidential drawdown packages." She added that, "in some cases, 'replacement cost' rather than 'net book value' was used, therefore overestimating the value of the equipment drawn down from US stocks."1
  • Speaking anonymously to Reuters, another Pentagon official stated that the amount of overvalued weapons might in fact grow beyond $3B as the situation is examined more thoroughly. The official added that it will take some time to fully conduct the accounting checks.3
  • Reuters further reported that it had seen a memo to Pentagon accountants from March 31 that clarified how the weapons shipments to Ukraine should be valued, suggesting the Defense Dept. has been aware of the issue for nearly two months. It was not clear why the revelation was initially disclosed this week.3

Sources: 1Associated Press, 2POLITICO, and 3Yahoo News.

Narratives

  • Pro-establishment narrative, as provided by Associated Press. This is excellent news for Ukraine's war effort. The US still has plenty of capacity to ensure Ukraine has the weapons it needs to fight off Russia and launch its counteroffensive, without facing the red tape of further approval from Congress.
  • Establishment-critical narrative, as provided by AntiWar. Despite wishing the world to think it stands in solidarity with the Ukrainian cause, the US administration is expecting conflict with Russia to continue for years or even decades, as Kyiv will be very unlikely to deal a mortal blow to its enemy. The US has saved face internationally by encouraging the continuation of war, including by supplying Ukraine with weapons, when it knows that a negotiated settlement would be best for everyone. News of this accounting error will not benefit Ukraine, only spur on a deadly conflict without affecting its outcome.

Predictions