The German Ministry of Defense reports on its official website that the Budget Committee of the Bundestag has supported a new framework agreement for the production of artillery ammunition.
This agreement is part of the effort to support Ukraine's defense capabilities, it provides for production and supply of 350,000 artillery shells in 155mm caliber. Other countries can also participate in this project, as it is part of the EU's ammunition initiative to accelerate the supply, procurement and production of ammunition for Ukraine.
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The ministry believes this major contract on artillery shells will help to increase European ammunition production in the long term so that EU member states can replenish their depleted ammunition stocks.
As for direct support to Ukraine, within the mentioned framework agreement, Germany has ordered 68,000 high-explosive munitions from an unspecified French defense company to be delivered to the Ukrainian Armed Forces, with a contract value of EUR 278 million. Therefore, the price of one 155mm artillery shell according to this contract roughly equals 4,088 euros.
Surely, this cost is notably lower than the estimated price of €8,000, previously calculated by Admiral Rob Bauer, Chair of the Military Committee in NATO.
Still, it is somewhat higher than a contract signed in October 2023 between Germany and Rheinmetall, where the price for one 155mm projectile was approximately €3,300.
On a side note, notice that German government traditionally awarded contracts for Ukraine to Rheinmetall, but it seems they turned to another company this time, possibly because of how busy this local arms maker has been lately.
For example, this December, Rheinmetall Expal Munitions secured another contract to supply 40,000 ammunitions to Ukraine, with deadlines set for as soon as 2025.
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