This significant financial injection is aimed at expanding the European defense industry's capacity to manufacture up to 2 million shells annually by the end of 2025.
This investment under ASAP is expected to elevate Europe's annual ammunition production to 2 million units by the targeted year. The European Commission expedited the ASAP evaluation, selecting 31 projects intended to enhance the ammunition production capabilities and preparedness of the European industry.
The projects span five critical sectors: explosives, gunpowder, projectiles, missiles, and testing and certification for recovery. A combined funding of €513 million, contributed by the budgets of the EU and Norway, will support these initiatives.
This funding is poised to stimulate further investments from the defense industry through co-financing mechanisms, potentially raising the total investment in the supply chain to approximately €1.4 billion. Grant agreements with the chosen applicants are anticipated to be signed by May 2024.
Czech Republic Secures Shells for Ukraine Amid Shortages
The Armed Forces of Ukraine have been facing a severe shortage of artillery ammunition on the frontline, contributing to strategic retreats in regions like Avdiyivka and several other settlements in Donetsk. Responding to this critical need, Petr Pavel, the President of the Czech Republic, disclosed that Prague had identified a source for 800,000 artillery shells suitable for Ukraine, split between 500,000 of 155 mm and 300,000 of 122 mm calibers. Nevertheless, the acquisition of these munitions required funding.
Pavel recently announced that allies have nearly gathered the requisite funds for purchasing the specified batch of ammunition. Additionally, Czech Prime Minister Petro Fiala revealed that there's an optional promise for another 200,000 shells for Ukraine, marking a significant contribution towards addressing the ammunition shortage faced by Ukrainian forces.
