NATO Secures $1.2B Artillery Ammunition Deal to Replenish Stocks Following Donation to Ukraine

The North Atlantic Treaty Organization (NATO) has inked contracts valued at $1.2 billion for the procurement of approximately 220,000 155mm artillery shells.

The deal, finalized by the NATO Support and Procurement Agency (NSPA) on Tuesday, January 23, underscores NATO's commitment to fortifying its arsenal and supporting member countries.

NATO Secretary General Jens Stoltenberg highlighted the importance of the ammunition acquisition, emphasizing its critical role in safeguarding the Alliance's territory, bolstering reserves, and sustaining military assistance to Ukraine. Stoltenberg stated, "This demonstrates that NATO’s tried and tested structures for joint procurement are delivering. Russia’s war in Ukraine has become a battle for ammunition, so it is important that Allies refill their own stocks, as we continue to support Ukraine."

The procurement, encompassing 155mm shells for large-caliber artillery, comes as part of a broader effort by NATO to enhance its defense capabilities and respond to evolving geopolitical challenges. The NSPA, led by General Manager Stacey Cummings, anticipates a delivery timeline of 24-36 months for the ordered projectiles.

The announcement follows the implementation of NATO's Defense Production Action Plan in July 2023, which laid the groundwork for substantial ammunition purchases. The NSPA has since sealed contracts totaling approximately $10 billion, including a $5.5 billion deal for 1,000 Patriot anti-aircraft missiles and a $4 billion agreement covering 155mm artillery shells, anti-tank guided missiles, and tank ammunition.

Notably, NATO's procurement initiatives extend beyond ammunition, with recent decisions encompassing the acquisition of six E-7A Wedgetail radar detection and guidance aircraft. The contracts for these aircraft are slated to be signed in 2024, further augmenting NATO's technological capabilities.

In a parallel development, the U.S. State Department granted approval in December 2023 for the potential sale of 940 new FIM-92K Stinger Block I MANPADS to three European NATO countries. The estimated cost of this anti-aircraft missile supply, along with related equipment and logistical support, stands at $780 million.