As briefly announced by Ukraine's Ministry of Defense, on May 28, a contract worth €2.2 billion was signed in Germany with Diehl Defence for the production of IRIS-T systems and associated missiles.
It appears that this procurement will be financed directly by Germany as part of its approved €5 billion annual aid package for Ukraine. Berlin announced in 2023 its intention to provide such annual support through at least 2027.
Read more: The West Air Command Showcases Combat Success with the IRIS-T Air Defense System (Video)
According to Ukraine’s MoD, the contract with Diehl Defence includes the production of four IRIS-T air defense systems and their missiles, but no further details were disclosed, such as the specific types of systems or missiles, delivery timelines, or other terms.
It remains unclear whether the systems involved are the short-range IRIS-T SLS (effective up to 12 km) or the IRIS-T SLM (up to 40 km). Ukraine currently operates both versions, and development of the longer-range IRIS-T SLX (up to 80 km) is also underway.
However, the majority of the funds in this contract are likely allocated to missile procurement. There’s a useful point of comparison: in summer 2023, the Bundestag’s Budget Committee approved the purchase of six IRIS-T SLM systems and 216 missiles for approximately €950 million. That breaks down to about €158 million per system with 36 missiles, which is considered a minimum configuration.
This implies the new contract likely includes a large missile stockpile, also meant to sustain systems already transferred to Ukraine. To date, 12 IRIS-T SLM systems have been previously announced, most of which have already been delivered.
As for missile prices, while the cost of an IRIS-T SLM interceptor hasn’t been publicly itemized, it is assumed to be well over €1 million per unit. The air-to-air variant IRIS-T, used unchanged in the SLS system, is currently priced at €900,000 per missile.
Therefore, if the contract includes four IRIS-T SLM systems, then as much as €1.5 billion may be allocated purely to missiles. That would indicate around 1,000 missiles procured, depending on the mix of missile types.
It’s also likely that the contract includes a combination of IRIS-T SLM (medium-range) and SLS (short-range) systems. While the current price of SLS is not disclosed, it's expected to be significantly lower than the SLM, which would mean an even higher share of the funds going to missile stockpiles.
There’s also a possibility that Ukraine could become the first operator of the IRIS-T SLX, especially if Diehl Defence successfully adapts it for intercepting ballistic missiles.
Read more: The IRIS-T Air Defense System Successfully Intercepts russian Cruise Missile Mid-Flight (Video)
