The US Department of Defense announced that it had awarded a $208,736,138 firm-fixed-price contract for Romania’s Naval Strike Missile Coastal Defense System.
Raytheon Missiles & Defense is one of the world’s leading defense integrators, delivering the most advanced end-to-end solutions to detect, track and engage threats.
According to the cited source, this contract includes options which, if exercised, would bring its cumulative value to $217,136,549. Work will be performed in Kongsberg, Norway (60%); Tucson, Arizona (34%); Schrobenhausen, Germany (2%); Raufoss, Norway (1%); and various other locations each less than 1% (3%), and is expected to be completed by September 2028.
The Romanian funds in the amount of $208,736,138 will be obligated at the time of award and will not expire at the end of the current fiscal year.
Romania, the Eastern border of the NATO flank, has raised its military budget this year to 2.5% of GDP, the highest level ever achieved. This happens in a very complicated regional and international context generated by the proximity of the Russian-Ukrainian conflict.
A recent survey showed that almost half of Romanians think the country is at risk of being attacked by Russia in the future. This sort of acquisition is also meant to reassure the population the country’s territory is safe and protected by NATO and the national forces.
Romania is expected to spend more on similar defense systems and to strengthen its capacity to defend the EU’s and NATO’s Eastern borders.