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NATO signs $1.2bn artillery shell deal

Ademola Damilola by Ademola Damilola
January 23, 2024
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On Tuesday, NATO finalized contracts totaling $1.2 billion for the procurement of more than 200,000 155-millimeter artillery shells in response to Russia’s ongoing invasion of Ukraine. Western alliance members have depleted their ammunition reserves by dispatching heavy munitions to aid Ukraine’s forces in their intense and protracted conflict against Russia.

The newly inked agreements with French company Nexter and Germany’s Junghans Microtec are anticipated to encompass approximately 220,000 shells, with deliveries to NATO members scheduled to commence by the end of 2025. NATO Secretary-General Jens Stoltenberg emphasized the significance of allies replenishing their own arsenals while maintaining support for Ukraine.

Stoltenberg noted, “It is important that our allies refill their own stocks as we continue to support Ukraine.” The alliance, led by the United States, initiated a defense production reinforcement plan last year, resulting in collaborative procurement contracts for ammunition amounting to around $10 billion. These agreements include a recent pact to acquire up to 1,000 European-produced Patriot air defense missiles.

Simultaneously, the European Union has launched its own initiatives to boost defense production. However, the 27-nation bloc is falling short of its goal to supply Kyiv with one million artillery shells by March. This effort to replenish stocks and escalate production is occurring amid uncertainties about future U.S. support for Ukraine.

Stoltenberg affirmed that supporters of Kyiv “will support Ukraine with the systems and the weapons and ammunition they need to prevail as a sovereign, independent country.” Despite the lack of any perceived direct or imminent threat from Russia against any NATO ally at present, the alliance has intensified its eastern defenses as a deterrent against potential aggression from Moscow.

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