CSG Inks Historic Ammunition Deal with Slovakia as EU Defence Spending Soars

The Czech defence group CSG and its Slovak subsidiary ZVS Holding have signed a potentially €58 billion ammunition supply deal with Slovakia, backed by the EU's SAFE financing. Slovakia aims to bolster its defence industry as the EU and NATO increase spending in response to tensions with Russia.

The Czech defence company CSG has signed a groundbreaking framework agreement with Slovakia's defence ministry, securing a long-term ammunition supply deal worth up to €58 billion. The agreement allows CSG's Slovak subsidiary, ZVS Holding, to sell to EU states, with the EU's SAFE programme potentially funding purchases.

Slovakia, aiming to solidify its defence capabilities, offers EU member states the chance to join the deal, as the region boosts spending after Russia's invasion of Ukraine. CSG, led by billionaire Michal Strnad, has become a major player in the European defence market and is among the top artillery ammunition manufacturers.

Under the deal, ZVS Holding will produce and supply various ammunition types, including 155 mm and 120 mm artillery rounds, to Slovakia and other EU nations. The deal reflects the potential volume of production, with Slovakia drawing €2.3 billion from the SAFE programme, as stated by Defence Minister Robert Kalinak.

(With inputs from agencies.)