Slovakia launches "Slovak ammunition initiative", but not for Ukraine

Slovak ammunition manufacturer ZVS Holding a.s., in which the Slovak Republic and the CSG Group each hold a 50% stake, has signed a framework agreement with the Slovak Ministry of Defense for the supply of large- and medium-caliber ammunition worth up to €58 billion over seven years, according to the CSG website.

Following the example of the "Czech initiative" for Ukraine, this project has been dubbed the "Slovak initiative."

"Slovakia aims to become a leader in supplying large- and medium-caliber ammunition to EU countries, offering them a unique procurement format through the SAFE program. Negotiations are already underway with several stakeholders interested in joining the Slovak ammunition initiative," said Deputy Prime Minister and Minister of Defense Robert Kaliňák.

The agreement specifies that ZVS Holding a.s. will supply 155 mm artillery shells, 120 mm tank ammunition, and 30 mm and 35 mm cannon rounds.

The €58 billion figure represents the maximum potential volume of deliveries.

The Slovak Republic is offering EU member states the opportunity to participate in the framework agreement in a government-to-government (G2G) format.

A key component of the agreement is the European SAFE program, under which EU member states can receive loans at 1% per annum with maturities of up to 40 years to finance existing and new defense projects in strategic areas, including ammunition purchases and ground or air defense systems. Slovakia plans to raise €2.3 billion under the SAFE program, of which €38.5 million is allocated for large- and medium-caliber ammunition for the Slovak Armed Forces.

The SAFE program does not provide loans to Ukraine directly but allows member states to procure equipment for Ukraine.

• CSG is the main supplier of shells to Ukraine under the "Czech initiative". Czech politician Andrej Babiš, whose party won the recent parliamentary elections, has promised to cancel the "Czech initiative". However, CSG hopes that the future Czech government will recognize the benefits of continuing to supply ammunition to Ukraine.