Croatia
In the presence of the Prime Minister of the Republic of Croatia, Andrej Plenković, and the Federal Chancellor of the Federal Republic of Germany, Friedrich Merz, in Berlin, the Deputy Prime Minister and Minister of Defence of the Republic of Croatia, Ivan Anušić, signed the Agreed Document – confirming the order for the delivery of 44 Leopard 2A8 tanks to Croatia.
Photos: Ministry of Defence of Croatia
Earlier, Minister Anušić signed an additional agreement with KNDS Deutschland at the Embassy of the Republic of Croatia concerning the delivery of simulators and equipment, as well as a contract for extended warranty services for the Leopard 2A8 tanks for a period of five years, starting from the delivery of the first tank.
With these signatures, the implementation of a strategic project to modernize the armoured and mechanized forces of the Croatian Army began. The total value of the contract for the purchase of 44 Leopard 2A8 tanks, together with additional contracts for simulators and extended warranties, amounts to 1,483,938,969.77 EUR.
A significant portion of the agreement is financed through loans under the European SAFE (Security Action for Europe) instrument, from which Croatia is set to receive EUR 1.7 billion. For the tanks, this includes 1,140,387,021 EUR in the years 2026–2030, while the remaining amount of 343,551,948.77 EUR, covering extended warranty services, inflation adjustments, and VAT, will be included in the state budget until 2033. Deliveries of the Leopard tanks are planned for 2028–2030.
The tank acquisition was approved on 29 October of this year by the Defence Committee of the Croatian Assembly (parliament) as part of a major modernization package for the Croatian Armed Forces (Oružane snage Republike Hrvatske). A letter of intent regarding the procurement of German combat vehicles for the Croatian Army (Hrvatska kopnena vojska, HKoV), which will replace the M-84A4 Sniper tanks, was signed on 28 October 2024.
For the materiel transferred to Ukraine by the Republic of Croatia at the end of 2024, the Federal Ministry of Defence of the Federal Republic of Germany paid 144,800,000 EUR into the state budget for distribution by the Croatian Ministry of Defence. These funds are allocated for the purchase of new Leopard 2A8 tanks, which means that the total value of the tank procurement will be reduced by this amount.
Specifically, at the initiative and in cooperation with the Federal Republic of Germany, the Republic of Croatia transferred to Ukraine a portion of its M-84A4 Sniper tanks (reports mentioned 30 units) and a number of M-80 infantry fighting vehicles, along with associated spare parts and ammunition, with a total value of 144,800,000 EUR.
In addition to the signed contracts for 44 Leopard 2A8 tanks, 18 CAESAR 6×6 Mk II self-propelled howitzers, and 15 VBMR-L Serval armoured vehicles, contracts will also be signed by the end of this year for the procurement of counter-drone systems (including SKYctrl from the Polish company Advanced Protection Systems) and for the purchase of 420 Tatra heavy off-road trucks. The value of these four major procurements is around 2 billion EUR, including VAT. Apart from the counter-drone systems, the other three systems will be financed through SAFE funds.
Lithuania
On the same day, the Lithuanian Ministry of Defence, together with its German partners KNDS Deutschland (part of the German-French joint venture KNDS) and Rheinmetall Landsysteme (part of Rheinmetall AG), as well as representatives of the Lithuanian state energy group Epso-G, signed a memorandum on industrial cooperation related to the development of assembly infrastructure and operational support for Lithuania’s future Leopard 2A8 tanks. The Ministry of the Economy and Innovation has granted this project the status of a major investment project, ensuring its faster implementation.
Photo: Lithuanian Ministry of Defence
It is planned that 25.1% of the shares of the joint venture Lithuania Defense Services (LDS), managed by KNDS Deutschland and Rheinmetall Landsysteme, will be transferred to Epso-G Invest, a subsidiary of the Epso-G group. The parties intend to harmonize the detailed terms of cooperation in 2026.
To ensure the fastest possible delivery schedule for the tanks and to create the conditions for the development of Lithuania’s defense industrial potential, it has been agreed that part of the vehicles will be assembled in Lithuania. After signing the agreements with the Ministry of Defence, LDS intends to build a Leopard 2A8 assembly facility in Lithuania. For its part, Lithuania commits to contributing to the development of LDS’s production base, and alongside the tank acquisition contract, has signed an additional agreement to ensure the technical readiness of the tanks. Negotiations on this matter were reported on 10 June 2024 (Lithuania aims to co-produce Leopard 2A8 tanks).
“This agreement marks a crucial stage in strengthening Lithuania’s defense capabilities. For the first time in history, some of the most modern NATO-standard battle tanks will be assembled in Lithuania, and the simultaneously developed infrastructure will ensure their long-term technical readiness. This enhances the potential of our army while also contributing to the growth of the country’s defense industry,” said Lithuanian Minister of Defence Robertas Kaunas.
According to Minister of Energy Žygimantas Vaičiūnas, energy and national security are inseparable today, and this planned investment is another important step in strengthening the ecosystem of Lithuania’s defense industry and the resilience of the state.
“Our energy company Epso-G Invest, together with other strategic firms, is already implementing a major project, a 155 mm artillery ammunition factory, and today’s engagement marks yet another concrete step in expanding our capabilities. Attracting new projects benefits not only defense and the economy but also the energy sector — energy-intensive production accelerates the development of renewable resources and strengthens energy independence,” the minister said (Bejsagoła: Start of construction of the Rheinmetall Defence Lietuva ammunition plant).
LDS will be responsible not only for assembling Leopard 2A8 tanks in Lithuania, but also for their long-term maintenance, repair, and technical readiness, as well as for servicing other equipment of the Lithuanian Armed Forces. It is also expected that in the future LDS will be able to provide services to the German 45th Armored Brigade stationed in Lithuania and support a broader fleet of armored vehicles from other countries.
“We expect the first tank assembled in Lithuania to be delivered at the beginning of 2028, with the remaining units produced, in accordance with the updated agreement, by the end of 2030,” said Markus Schmidt, Chairman of the Board of Lithuania Defense Services.
Infrastructure necessary for the company’s development is planned to be established in the Kaunas Free Economic Zone (FEZ). Lithuania Defense Services aims to invest around EUR 50 million in the project and create approximately 100 new jobs.
This project represents a significant step toward fulfilling the Lithuanian Ministry of Defence’s strategic priority of establishing a local defense industry capability, enabling the development of infrastructure for the assembly, production, and long-term maintenance of military equipment in Lithuania.
Cooperation with KNDS and Rheinmetall will allow Lithuania to attract modern military technologies and strengthen the country’s resilience and defense potential.
Lithuania’s Minister of Economy and Innovation, Edvinas Grikšas, together with KNDS Deutschland representatives Markus Helm and Markus Schmidt, also signed a major investment agreement for the project with Lithuania Defense Services. According to the minister, the agreement provides the company with clear and favorable conditions for rapid establishment, the launch of production processes, and the smooth implementation of the project in the Kaunas FEZ.
“This investment once again demonstrates that Lithuania is a reliable and strategically important location for major defense industry projects. It strengthens our cooperation with leading German defense companies and further integrates Lithuania into joint European projects. The signed agreement ensures a clear and secure start to production activities and consolidates the long-term outlook for this project in Lithuania,” said Edvinas Grikšas.
On 13 August of this year, the Ministry of Defence obtained government approval to increase the state loan limit by 800 million EUR to provide financing for key military projects, with the Leopard 2A8 tanks at the forefront.
It should be recalled that on 16 December 2024, then-Minister of Defence Dovilė Šakalienė, during her first foreign visit in Berlin, signed a Letter of Intent (LoI) regarding the potential purchase of 44 Leopard 2A8 tanks. The planned acquisition amounts to 950 million EUR.
According to the signed document, Lithuania joined the agreement on the joint procurement of Leopard 2A8 tanks from KNDS Deutschland dated 30 May 2024, submitting the relevant application on 10 December. This followed the approval issued on 22 October 2024 by the Lithuanian State Defence Council (Valstybės gynimo taryba, VGT). The Ministry had announced negotiations on this matter on 23 January 2024, with the first reports dating back to 28 July 2023.
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