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Private investors are playing a crucial role in helping Ukraine fend off Russia’s invasion, and Australian investors should take note as strategic tensions intensify in our region.
That’s the message defence communications specialist James Baker will deliver at the Australian Industry and Defence Network (AIDN) conference on the Gold Coast this week, drawing direct lessons from Ukraine’s wartime response.
Since Russia’s full-scale invasion in February 2022, Ukraine has faced relentless attacks, with cities shelled, infrastructure destroyed and tens of thousands of lives lost. But while Ukraine’s military has been bolstered by Western aid, local businesses and private investors have also played a vital role in rapidly mobilising support for the country’s survival.
Baker, who has travelled to Ukraine and witnessed the response firsthand, says the nation’s skyrocketing defence budget echoes Australia’s own experience during World War II.
“At the start of the Second World War, Australia was spending just 1.5 per cent of its GDP on defence, and that figure surged exponentially in the following years. Ukraine is in a similar position now, with defence spending soaring from the low single digits to around 34 per cent of GDP,” Baker said.
“Their government is encouraging private investors to step up when the country needs them most. Australia should take heed of that warning before it’s too late. These decisions were made after the missiles started hitting Ukrainian cities – we still have a chance to act before the threat reaches our shores.”
Baker criticised Australian financial institutions for their reluctance to support defence-related industries, noting that many lenders refuse to back companies producing the very weapons and systems needed to defend Australia and its allies.
“That’s a shamefully irresponsible concession to minority pressure groups,” Baker said. “Changing your policies when the missiles are already landing is far too late. Our Ukrainian friends have learned that the hard way and are now losing more than 100 citizens a day.”
Baker also pointed out that Australia’s own strategic documents warn of growing instability, labelling the current period the most dangerous since World War II.
“If ESG (environmental, social, and governance principles) is meant to stand for anything, then defending our way of life should be priority one,” he said.
Stephen Kuper
Steve has an extensive career across government, defence industry and advocacy, having previously worked for cabinet ministers at both Federal and State levels.
