The European Commission allocates 500 million euros for the production of shells

On Friday, the European Commission allocated 500 million euros (out of a total of 2 billion euros) for EU defense industry companies to increase ammunition production capacity, according to a press release from the Community Executive. The additional production would provide Ukraine with more artillery shells and replenish depleted stocks of European states.

Within the ASAP funding scheme (Act in Support of Ammunition Production), between 2.1 and 47 million euros can be granted for the 31 projects coordinated by large companies in the defense industry, among which are include Rheinmetall, Nammo, Chemring Nobel, Hellenic Defense Systems or Eurenco.

The financing of the respective projects will generate additional investment from the industry through co-financing, resulting in a total investment of approximately euro1.4 billion in the supply chain. ASAP focuses on the production of powder and explosives, areas that will receive three quarters of the allocated amount. The program will support projects to increase the annual production capacity by more than 10,000 tons of powder and by more than 4,300 tons of explosives. To this end, the Union will invest 248 million euros in powder production capacity and 124 million euros in explosives manufacturing capacity.

The European defense industry will thus be able to expand its ammunition production capacity to two million shells per year by the end of 2025.

Thanks to the measures already taken, the European annual production capacity for 155 mm shells had already reached 1 million shells in January 2024.

The European Commission's announcement was made after, earlier on Thursday, in his activity report for the past year, Jens Stoltenberg, the Secretary General of NATO, asked member states to provide Kiev with ammunition and military equipment. He said Ukrainian troops were outgunned and underarmed in a standoff with Russian troops that has not abated in intensity two years after Putin's Russia completely invaded Ukraine.

Jens Stoltenberg stated: "Unprecedented aid from NATO allies has helped Ukraine survive as a sovereign nation. But now, Ukraine needs even more support, and it needs it now. Ukrainians are not without courage, they are without ammunition. Together, we have the ability to give Ukraine what it needs. Now, we must show the political will to do so. All allies must dig deep and deliver quickly. Every day of delay has real consequences on the battlefield in Ukraine."

Ukrainian troops have been forced to ration their ammunition stocks and artillery on the eastern battlefield after Russian forces, emboldened by the successful assault on the industrial town of Avdiivka earlier this year, pressed on despite the casualties they Kiev says Russia registered them.