On Wednesday, August 13, 2025, the Lithuanian Ministry of Defence announced that it had obtained government approval to increase the budget loan limit by 800 million EUR this year to finance key military projects, with the Leopard 2A8 tanks at the forefront.
Photo: Jakub Link-Lenczowski, MILMAG
“Collective defense is our essential pillar, and Lithuania’s main contribution to it is a mechanized division that meets NATO standards. Tanks are the primary platform in such a unit. Their integration into the forces is the most time-consuming, therefore any delay is not possible,” emphasized Minister of National Defense Dovilė Šakalienė.
Of the aforementioned EUR 800 million, more than half, 461 million EUR, will go toward the Leopard tanks.
On December 16, 2024, during her first foreign visit in Berlin, Minister Dovilė Šakalienė signed a Letter of Intent (LoI) regarding the possible purchase of 44 Leopard 2A8 tanks. The contract is expected to amount to 950 million EUR, with deliveries scheduled to begin before 2030 (interestingly, in December it was still assumed that deliveries would only begin in 2035 – ed.).
Under the signed document, Lithuania joined the joint procurement framework with KNDS Deutschland for Leopard 2A8 tanks on May 30, 2024, submitting the formal request on December 10. This followed the approval granted on October 22, 2024, by the Lithuanian State Defence Council (Valstybės gynimo taryboje, VGT). The Ministry of Defence had announced negotiations on January 23, 2024, with the first reports on the matter dating back to July 28, 2023.
“The new Leopard 2A8 tanks stand out not only for their powerful armament and mobility but also for their most advanced protection systems. Sensors, laser warning receivers, and other modern equipment will provide maximum security even in the most challenging situations. Taking into account the particularly rapid development of the drone and counter-drone defense industry, the production of the tanks during this period will feature the most appropriate integrated electronic and kinetic counter-drone protection,” stated Minister Dovilė Šakalienė.
According to the minister, the contract for 44 Leopard 2A8 tanks is not only a key factor in ensuring the combat effectiveness of the new armored battalion within the mechanized division and a new stage in the modernization of the armed forces, but also an essential element of cooperation with the German division tasked with defending Lithuania, ensuring smooth joint operations of Lithuania and its allies in the defense of Lithuanian territory.
Lithuania intends to pay an advance for the battalion of tanks already in the third quarter of this year. It is worth adding that on June 10 this year, Šakalienė told the Baltic News Service (BNS) that the ministry was negotiating with German industry the possibility of assembling the tanks in Lithuania with the participation of local companies.
In the budget bill for 2025–2027, the Ministry of Finance granted the right to take out loans for national defense needs, including infrastructure to ensure military and troop mobility, as well as capital investments in the defense industry being developed in Lithuania.
Lithuania is already allocating 4% of its GDP to defense this year, and next year the figure is planned to rise to 5.25% of GDP.
🇱🇹 Lithuania is boosting its defence: @LithuanianGovt raises borrowing limit by €800M for military equipment. Advance payment for 44 Leopard 2A8 tanks is now planned for Q3 2025 to speed delivery before 2030 in line with NATO plans. pic.twitter.com/NHDvVrM0zk
— Lithuanian MOD 🇱🇹 (@Lithuanian_MoD) August 13, 2025
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