Representatives of the Norwegian company Nammo note that the plan to prioritize the supply of raw materials to companies producing ammunition for Ukraine will lead to the fact that some suppliers will not disclose data on what they have in stock.
The European Union plans to compel explosives manufacturers to ship their products primarily to companies that produce ammunition for Ukraine. The focus is on the production of 155mm artillery shells that will help Ukraine resist the Russian invasion. This was reported by Defense News columnists on June 19.
This is a “temporary emergency measure” currently going through the EU approval process. To this end, in early May, the European Commission announced that bloc members had been allocated 1 billion euros as compensation for the shells they transferred from their stockpiles, with Brussels planning to allocate another 500m euros to expand production in Europe.
“This plan has been praised in the context of the EU’s expansion into new territories as a buyer of arms and being a catalyst for the rapid growth of the defense industry,” the statement said.
At the same time, the European Union acts as a regulatory body that facilitates the sale of raw materials to companies in need that produce ammunition for the needs of the Ukrainian Armed Forces.
At the same time, this plan will lead to increased EU control over the European munitions industry. This raises concerns that the plan may require the disclosure of trade secrets or sensitive data, giving Brussels too much power.
Vegard Sande, spokesman for the Norwegian munitions company Nammo, states that defense companies with excess stocks may have to sell to competitors who are short of supply in the future. He said that if the EU requires companies to share their inventory, companies may not disclose exactly what they have in stock.
Earlier it was reported that the German Rheinmetall wants to conclude a multi-billion dollar deal with the German authorities and supply Ukraine with the first 35 mm shells for Gepard self-propelled gun mounts. According to Armin Papperger, the company’s CEO, the concern began production after Switzerland refused to allow the sale of ammunition to Ukraine for Gepard.
Source: Focus
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