NATO Signs 1.2 Billion Dollar Contract to Address Ammunition Shortages in Ukraine
In an effort to tackle ammunition shortages in Ukraine, NATO has signed a $1.2 billion contract for the production of hundreds of thousands of 155mm artillery rounds.
The decision follows Ukraine's Defense Minister Rustem Umerov's recent acknowledgment of a severe ammunition shortage in the country, describing it as "shell hunger." Ukraine's urgent need for ammunition stems from the ongoing conflict, which continues almost two years after Russia's full-scale invasion. NATO Secretary-General Jens Stoltenberg emphasised the critical role of ammunition in the ongoing conflict, stating, "The war in Ukraine has become a battle of ammunition."
The NATO Support and Procurement Agency (NSPA) facilitated the deal on behalf of several allies of Ukraine, including Belgium, Lithuania, and Spain. Recognizing the advantage of bulk purchasing for lower prices per unit, these nations plan to either enhance their inventories or provide artillery rounds to Ukraine. The contract, set to yield approximately 220,000 rounds, is expected to see the first deliveries of ammunition by the end of 2025, with French arms maker Nexter and Germany's Junghans set to supply the shells.
NATO's efforts to address military stock shortages have already led to agreements totaling around $10 billion since the initiation of the program in July. These agreements cover not only artillery rounds but also tank shells and Patriot air defence missiles.
As NATO takes steps to meet ammunition demands, discussions among defence ministers in February will explore additional strategies to enhance industrial production. Stoltenberg emphasised the necessity of such measures to sustain Western support for Kyiv and prevent a tragic outcome for the Ukrainians.
