Estonia and Lithuania to purchase explosives worth € 200 million
30 June, 2023 155-mm projectiles. Photo credits: US Army Estonia together with Lithuania will buy a large amount of explosives and charges.
The value of this purchase is about EUR 200 million. The statement was made by the Estonian Centre for Defence Investments. A framework agreement for the purchase of explosives and charges was signed between Lithuania and the Estonian Centre for Defence Investments (ECDI), the Police, and Border Guard Board and the Rescue Department.
The big contract was concluded with as many as 11 different suppliers.
Explosive. Photo from open sources
It is emphasized that the new joint agreement will make it possible to urgently purchase explosives and various charges, which gives an advantage when responding to crisis situations. "After the Russian invasion of Ukraine, the demand for munitions increased sharply throughout Europe, after which we were convinced that the presence of a large number of suppliers would give us advantages for urgent deliveries," Ramil Lipp, Armament Category Manager of the ECDI emphasized.
He also explains that now if one supplier has problems with deliveries, it is possible to immediately place an order with another partner under the contract. Procurement is divided into two parts. In the first stage of the tender, explosives and materials will be purchased from nine different suppliers, including companies from Estonia.
In the second stage, charges, mines and their components will be purchased. Contracts have been concluded with a total of 11 suppliers. "Joint procurement with other countries and institutions gives us the opportunity to consolidate the needs of different parties and achieve price savings.
Jointly acquired combat equipment also strengthens allied ties and enables cross-use and mutual support within the country," Lipp added.
155-mm artillery shells. Photo from open sources
Lithuania's Ministry of National Defense has unveiled plans to spend around EUR3.1 billion on ammunition and explosives over the next decade, keeping in mind lessons learned from Russia's invasion of Ukraine.
PzH 2000 self-propelled guns of the Lithuanian armed forces. Photo credits: Ministry of Defense of Lithuania.
The Ministry of National Defense of Lithuania especially focused on military stockpiling last year in the wake of the dramatic change in the geopolitical situation.
2022 was a record year for stocking up, receiving almost one fifth of the defense budget.