Headquartered in Prague, the Czechoslovak Group (CSG) defense conglomerate disclosed some details regarding the supplies under the Czech Ammunition Initiative, a government-run effort to procure artillery rounds in countries outside Europe on behalf of Ukraine.
Specifically, a statement published by CSG reveals the price of a 155 mm high-explosive projectile and — while avoiding to name the supplier country explicitly — indicates that the shipments of ammunition were carried out from Turkiye. Previously, none of the foreign companies attracted by the Czech Initiative or their countries of location have been made public, and even this time, sharing the information was a forced measure on the part of the Czechoslovak Group.
Read more: Czech Ammunition Finally Reaches Ukraine, How Many are in the First Batch
In a crisis communication manner, CSG responded to allegations of unreasonable profit the holding allegedly gained, the suspicions based on documents passed between top Czech officials, defense industry companies, and journalists. The papers "present the price of a Turkish ammunition manufacturer at USD 2700 per 155 mm HE grenade," reads the statement. "This is contrasted with the price of 3200 EUR at which this grenade was to be supplied to Ukraine under the Czech ammunition initiative."
CSG denies allegations of profiting from the ~$750 margin generated as a result, explains that the document reflects an indicative offer that is not the final conditions for the supply of ammunition, and elaborates on the multiple factors like shipping or security measures that add to the raw price at manufacturer's warehouse as this ammunition finds its way to the destination.
There are also some not-for-public factors of added value, for example, "replacing certain components of the ammunition with newly manufactured components" which may refer to refurbishment of older Turkish ammunition with newly-made primers, propellant charges, etc.
"Of course, a profit is made on the delivery, but it is substantially lower and entirely within the limits of what can be described as a reasonable profit," CSG stressed, adding that in these transactions, the Czech conglomerate is "certainly not a mere intermediary or reseller, but provides a highly complex service with considerable added value, using its long-established know-how in the field of trade in military material."
Czechoslovak Group avoids to mention specific names of companies involved, even of the enterprise within its own structure involved in organizing those shipments and mentions that the warehouses are located outside the Czech Republic.
On a note from Defense Express, Turkiye has been considered one of the most likely candidates for a donor of artillery ammunition under the Czech Initiative even before this insight. While the benefactors of the Czech proposal were kept secret, it was known for a fact that among them were countries with substantial pro-russian lobby, and russian intelligence has been long aware of these transactions, which is likely why all these details were made public.
Read more: U.S. Official Reveals the Monthly Production of 155mm Shells, Implications For Ukraine
