Germany plans to order €15 billion worth of ammunition, some of it likely for Ukraine

The German Defence Ministry is planning to order over 2 million artillery shells worth a record €15 billion to replenish its stockpile.

Source: Spiegel, citing sources

Details: Spiegel reported that German Defence Minister Boris Pistorius has submitted a draft contract with manufacturers Diehl Defense and Nammo Raufoss to the parliamentary budget committee. The contract entails the purchase of up to 2.35 million 155 mm artillery shells, with the value of up to €15 billion, which Spiegel called a record.

The shells will be manufactured and delivered by 2030. Initially, however, Germany wants to order 200,000 rounds of ammunition to replenish its stockpiles.

The contract also stipulates that NATO members and Ukraine can order additional artillery shells under this agreement, with the overall framework providing for the possibility of purchasing 2.3 million rounds of ammunition.

Spiegel wrote that Pistorius thus wants to ensure that manufacturers will be incentivised to create additional production lines and increase ammunition production in Germany. The German Finance Ministry appears to agree with this approach.

According to Spiegel, this suggests that the German government is preparing for the prospect of a prolonged war in Ukraine and the further threat of confrontation with Russia.

This is the second major deal for the purchase of ammunition; the first deal was struck with Rheinmetall and is worth up to €8.5 billion, which should stimulate the launch of new production in Lower Saxony.

The Budget Committee is expected to discuss the proposal in the near future. Coalition parties are generally supportive of large orders like this, but may have questions about the Ministry of Defence proposing another deal without funding guarantees.

Unofficial reports also suggest that the German Defence Ministry wants to purchase 105 Leopard 2A8 main battle tanks.

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