RTX Corp (formerly Raytheon)

2024

$950 million fine for fraud, corruption and overpricing in government contracts

One of the largest arms manufacturers in the United States, Raytheon, was fined $950 million for fraud, corruption and overpricing in government contracts. This became known in mid-October 2024.

The US Department of Justice notes that the company participated in a scheme to bribe an official in Qatar and conspire to violate US law when exporting weapons abroad. In addition, Raytheon employees provided the Pentagon with false and misleading information during negotiations on the conclusion of two contracts with the United States in the interests of a foreign partner on the supply of Patriot air defense systems and ensuring the functioning of the radar, follows from the statement of the department.

According to the US Department of Justice, in 2009-2020, Raytheon Technologies Corporation violated the provisions of the law on combating corruption abroad, the law on the control of arms exports and the rules of the international arms trade.

At a court hearing in New York, representatives of Raytheon Technologies Corporation pleaded guilty to participating in two separate fraud schemes, concluding an agreement to postpone the prosecution for a period of three years.

Under it, Raytheon is required to hire an independent compliance specialist within three years, improve an internal compliance program, notify the Justice Department of any violations, and actively cooperate in ongoing and future criminal investigations.

Agreement with Poland for $1.2 billion on the production of components for Patriot air defense batteries

In August 2024, Poland signed an agreement with Raytheon for $1.2 billion on the production of components for Patriot air defense batteries.

US-Polish relations "have never been so close," the ambassador said.

2023

Agreement with the Ministry of Defense of Poland for the production and repair of medium-range missile defense Wisla for $250 million

Polish Defense Minister Mariusz Blaszczak signed offset agreements with the American companies Raytheon and Lockheed Martin providing for the production and repair of elements for the national medium-range missile defense system Wisla.

The total value of the contract is about $250 million. In accordance with it, a production and repair base will be created in Poland for the facilities of the Wisla system, including LTAMDS Ghost Eye radars and PAC-3 MSE missiles.

The signed agreements also relate to the acquisition of additional capabilities for servicing F-16 and C-130 aircraft. In addition, Poland will receive competencies and licenses for the production of fuel for HIMARS MLRS missiles, as well as competencies related to PAC-3 MSE missiles for the Wisla system. To service these systems, a new repair and production base will be created in the country.

Offset agreements are a long-term supply contract. Offset means compensation provided by the supplier to the customer in the form of subcontracts of counter-trade or investment obligations.

In other words: Raytheon and Lockheed Martin are expected to invest some of the funds received from the contract in the Polish economy. This is likely to be realized through the construction of production plants.

Name change to RTX Corp

Aerospace and defense company Raytheon Technologies changed its name to RTX Corp. She announced this in mid-July 2023. At the same time, the RTX ticker at the aerospace technology manufacturer has been preserved.

China's sanctions against the company for supplying arms to Taiwan

In February 2023, China imposed sanctions on Lockheed Martin and Raytheon Technologies over their involvement in arms sales to Taiwan, the country's Commerce Ministry said.

The Chinese government will ban trade with Lockheed and Raytheon Missiles & Defense, as well as ban new investment by the two firms in China. It will also impose fines worth twice the value of those companies' arms sales contracts to Taiwan, the statement added.

In addition, the ministry will annul and prohibit the issuance of work and residence permits to top managers of companies and prohibit them from entering the country.

2022

Sanctions against the head of the company in China due to the supply of weapons to Taiwan

In September 2022, China announced that it was imposing sanctions on the heads of Raytheon Technologies and Boeing Defense due to arms sales to Taiwan.

Failure to restore production of Stinger air defense systems for supplies to Ukraine

The American defense giant Raytheon Technologies in April 2022 admitted that the company could not restore the production of Stinger anti-aircraft missile systems for deliveries to Ukraine during a special operation by Russia in this country.

"We have a very limited stock of materials for Stinger production. We are actively trying to find resources for some materials, but, unfortunately, the US Department of Defense has not bought Stinger for about 18 years, and some components are no longer sold, "the Washington Post quoted Hayes as saying.