Pistorius seeks to procure grenades at a staggering cost of 15 billion euros.
Germany and Ukraine aim to acquire substantial quantities of 155-millimeter ammunition in the near future. Defense Minister Pistorius is pursuing a billion-dollar deal with the arms industry to make this happen. This deal is expected to also boost production capacity within the Federal Republic.
As per media reports, Defense Minister Boris Pistorius is looking to seal another billion-dollar deal for the purchase of up to 2.35 million rounds of artillery ammunition. The Finance Ministry and the Defense Ministry have proposed this to the Budget Committee of the Bundestag. If given the green light, the Defense Ministry can ink a framework contract with German arms manufacturers Diehl Defense and Nammo Raufoss, valued at up to 15 billion Euro.
By the end of the decade, both the Bundeswehr and Ukraine can order substantial quantities of 155-millimeter ammunition from this contingent of 2.35 million rounds. The Bundeswehr is reportedly planning to order an initial batch of 200,000 rounds, valued at around 1.31 billion Euro, mainly to fill the gaps in their military stores.
With the record framework contract, Pistorius aims to encourage the two arms companies, Diehl Defense and Nammo Raufoss, to establish additional production capacity for the 155-millimeter ammunition in Germany. "There is a significant need for domestic production," the documents submitted to the Bundestag state, considering the high risk of unavailability or high prices and long delivery times for orders placed later.
This framework contract marks the second major ammunition deal in quick succession. A few weeks ago, the Defense Ministry inked a similar agreement with Rheinmetall for up to 8.5 billion Euro, allowing the Düsseldorf weapons manufacturer to build a new production line in Lower Saxony. The framework contract for Rheinmetall was also increased to 2.35 million rounds by the end of the decade.
Read also:
In response to the ongoing situation in Ukraine, Defense Minister Boris Pistorius is considering another billion-dollar deal for the purchase of artillery ammunition, aiming to secure a framework contract worth up to 15 billion euros with German defense companies Diehl Defense and Nammo Raufoss. The military is considering ordering substantial quantities of 155-millimeter ammunition from this deal, following a similar agreement with Rheinmetall worth up to 8.5 billion euros, which aimed to boost the defense industry and ensure domestic production.
