Ukraine Sets Record with 155mm Shell Deal, Saving 16% on Costs

Artillery Shell Procurement: 155mm Rounds

According to Главком: The Defense Procurement Agency (DOT) has secured the largest-ever batch of long-range 155mm artillery shells, marking a major step in strengthening Ukraine's defensive capabilities. Through competitive bidding, the agency achieved a 16% cost reduction from the initial budget, saving billions of hryvnias. Six manufacturers won the tender and signed contracts to supply the Armed Forces, ensuring a substantial influx of ammunition to the front lines.

Mykhailo Fedorov, Deputy Head of the Office of the President, commented: 'Long-range 155mm artillery rounds are one of the front's top demands. The DOT procurement agency has already contracted the largest batch in its history-and tens of thousands more rounds will reach the front than initially expected.'

He added that the 16% savings allowed for the procurement of tens of thousands of additional rounds, which will significantly impact the battlefield situation: 'The enemy will soon feel this difference firsthand.'

Next Steps in Defense Procurement

The next phase of defense procurement will focus on scaling up competition for FPV, mid-strike, and deep-strike drones. 'This summer, we will move to tender procedures across all possible defense purchases. More competition and savings mean more tools to destroy the Russians,' Fedorov stated. Some procedures will be conducted through the electronic Prozorro system, aiming to enhance transparency and efficiency in procurement.

Meanwhile, in the UK, a new factory in Glascoed-critical for boosting ammunition production and supplying shells to Ukraine-remains non-operational. More than six months have passed since its planned launch date, raising concerns. Ukraine's defense technologies are also drawing increasing interest from the US and Europe, which could foster further collaboration in defense procurement.

Overall, the DOT's proactive efforts-including the record shell contracts and planned tender procedures-are bolstering Ukraine's defense capabilities and providing essential support for the Armed Forces. Engaging new suppliers and expanding procurement volumes also underscores the importance of developing the national defense sector amid external aggression. Continued cooperation with international partners, particularly in technology, plays a key role in ensuring Ukraine's resilience on the front.

As Ukraine enhances its artillery capabilities, further developments in defense procurement are underway. The focus will shift towards increasing competition for advanced drones, which are crucial for modern warfare. Learn more about the implications of this significant contract and how it aligns with Ukraine's broader defense strategy in our detailed coverage here.