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HARRISON MILLER

Defense Investors Track Zelenskyy's Visit, $375 Mil. Ukraine Effort

Ukrainian President Volodymyr Zelenskyy arrived in the U.S. on Sunday, ready to present his "victory plan," a strategy for ousting Russia from Ukraine. Zelenskyy will visit President Joe Biden and U.S. officials on Thursday. He will also speak to the 79th United Nations General Assembly on Wednesday, following Biden's address to the group on Tuesday.

The visit coincides with U.S. efforts to deliver a $375 million aid package this week, the largest tranch of U.S. support since May.

"This fall will determine the future of this war," Zelenskyy posted on social media platform X on Sunday. "Together with our partners, we can strengthen our positions as needed for our victory — a shared victory for a truly just peace."

Zelenskyy meets directly with Biden on Thursday. His schedule also includes meetings with Democratic presidential nominee and current Vice President Kamala Harris, as well as former President Donald Trump and members of both parties of Congress. An announcement on the aid package is expected as early as Wednesday, according to Voice of America.

Some implementation points of Zelenskyy's victory plan rely solely on decisions from the U.S., according to a release from the Ukrainian president's office.

"The plan is based on decisions that should take place from October through December, without delaying the process. That is our hope," Zelenskyy said in the release.

Meanwhile, investors in U.S. defense stocks remain keenly interested in the outcome of both the aid package and U.S. support for Ukraine's military strategy. The IBD Aerospace/Defense industry group, which tracks 71 defense stocks, has increased more than 52% since Russia launched its invasion of Ukraine in February 2022.

Ukraine's Plan For Victory

Zelenskyy saved most details of the plan for his meeting with President Biden. Some elements include an accelerated entry to NATO and fewer restrictions on Western military aid, The New Yorker reported in an interview with Zelenskyy.

Zelenskyy hopes allies will authorize the use of longer-range weapons on Russia soil. But that request has so far been rebuffed due to fears of escalation. In addition to military deliveries, Ukrainian officials have also urged allies to increase investments in Ukraine to bolster its domestic production.

The country has increased its arms production sixfold since the start of the Russian invasion, according to Andriy Yermak, head of the presidential office for Ukraine.

"I call on our allies to increase and speed up the delivery of military assistance packages," Yermak said during a speech at the Council on Foreign Relations in New York on Monday. "Air defense equipment, drones, electronic warfare equipment, long-range systems and artillery shells are on our priority list."

On Sunday, Zelenskyy visited a Scranton Army Ammunition Plant in Pennsylvania to thank workers at the facility, which is ramping up production of 155-mm artillery shells for Ukraine. He added that he reached "agreements to expand cooperation" between Pennsylvania and the Ukranian city of Zaporizhzhia.

Definition Of Victory

During his interview with The New Yorker, Zelenskyy said victory is about justice.

"A just victory is one whose outcome satisfies all — those who respect international law, those who live in Ukraine, those who lost their loved ones and relatives," he said. "The fact that Ukraine desires a just victory is not the issue; the issue is that Putin has zero desire to end the war on any reasonable terms at all."

Zelenskyy added that Vladimir Putin and Russia have feigned an interest in negotiating to keep up appearances with the international community.

"Where he offers empty rhetoric, we offer a real formula for bringing peace, a concrete plan for how we can end the war,"
Zelenskyy said.

The victory plan aims to swiftly strengthen Ukraine, which would "force Putin to the negotiating table," Zelenskyy said.

Preventing Further Aggression

Zelenskyy also warned that if Biden and the U.S. refuse to help Ukraine, Russia's aggression will only continue.

"Ukraine has done everything possible to keep America out of this war, actually. Putin counted on defeating Ukraine in a quick campaign and, had Ukraine not stood its ground, Putin would have marched on," Zelenskyy said.

He added that Russia used a fake legal basis of protecting Russian speakers for its invasion of Ukraine, and could do the same for NATO members Poland and the Baltic States. That would lead to a full-scale, troops on-the-ground war.

"I believe that we have shielded America from total war," Zelenskyy said.

Meanwhile, President Biden voiced support for Ukraine during his U.N. address Tuesday.

Biden said the U.S. has "ensured the survival of Ukraine as a free nation," the New York Times reported. But he added, "We cannot grow weary, we cannot look away."

Biden continued to say that Ukraine's supporters must stay the course until they achieve a "just and durable peace."

IBD's Aerospace/Defense industry has gained 22% since the start of the year. Embraer, GE Aerospace and Howmet Aerospace are all up more than 80% year to date.

You can follow Harrison Miller for more stock news and updates on Twitter @IBD_Harrison

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