Estonia offers the EU to allocate 4 billion euros for ammunition for Ukraine
The Estonian proposal envisages a sevenfold increase in defense spending
According to a proposal sent to EU member states by Estonia, the bloc should invest about 4 billion euros to jointly purchase 1 million rounds of ammunition that Ukraine says it needs this year to repel Russian invasion.
Source. Bloomberg.
Details. It is noted that Russia is now firing in Ukraine in one day the same amount of ammunition that Europe can produce in a month. The EU urgently needs to increase its defense industrial capacity to help the Ukrainian military withstand the fight, Estonia argued in a document sent to member states.
"We must make extraordinary efforts to make quick decisions and implement the initiative as soon as possible, as early as 2023 – the urgency of the situation in Ukraine demands it," the document says.
"The price of any delay is very high and growing every day," the Estonian authorities emphasize.
This plan will allow the European industry to increase its capacity sevenfold and produce 1 million 155-mm shells within the next six months, as requested by Ukraine.
An additional €4 billion for the joint purchase of ammunition could come through the EU's European Peace Fund, which is currently being used to reimburse countries for their military support to Ukraine.
"This is a strategic direction that we have to move towards at least," said Kusti Salm, Permanent Secretary of the Estonian Ministry of Defense, adding that Europe is not currently able to provide this production.
"We are quite confident that the industry is capable of doing this when there is a demand signal and contracts. The only way to solve this is to make investments, and to make them now," he said.
Ukraine currently uses an average of 60,000 to 210,000 rounds of ammunition per month, but the European defense industry only has the capacity to produce 25,000 rounds in the same time frame, Estonia writes, adding that it would take as long as four years to meet Kyiv's needs. Meanwhile, Russia fires about 20-60,000 shells a day.
Background. Meanwhile, it has become known that Germany will again produce ammunition for Gepard self-propelled anti-aircraft systems.
If you have read this article to the end, we hope that means it was useful for you.
We work to ensure that our journalistic and analytical work is of high quality, and we strive to perform it as competently as possible. This also requires financial independence. Support us for only UAH 196 per month.
Become a Mind subscriber for just USD 5 per month and support the development of independent business journalism!
You can unsubscribe at any time in your LIQPAY account or by sending us an email: [email protected]
