US agrees in principle €3bn missile sale to Romania

The US state department has approved the possible sale of a Patriot missile defence systems worth $3.9bn to Romania, the US Defense Security Cooperation Agency said in a July 11 statement. However, Bucharest is understood to still be deciding between the Patriot system from US-based Raytheon and a rival system from European missile producer MBDA.

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تاریخ: ۲۱ تير ۱۳۹۶ - ۱۱:۴۳

Bucharest is currently stepping up military procurement. As a Nato member, Romania is committed to spending 2% of GDP (€3.6bn per year approximately) on defence. At this moment, Romania is close to approving a multi-billion euro defence spending package, including €6bn spending on missile systems. The government has drafted the bill and sent it to lawmakers, but its approval has dragged on.

According to the US agency’s statement, the Romanian government has requested the possible sale of seven Patriot configuration-3+ modernised fire units.

"Romania will use the Patriot missile system to strengthen its homeland defense and deter regional threats.  The proposed sale will increase the defensive capabilities of the Romanian military to guard against aggression and shield the NATO allies who often train and operate within Romania’s borders,” the agency said.

"The proposed sale of these missiles and equipment will not alter the basic military balance in the region.”

The alternative to the US Patriot system, currently being considered by the Romanian government, is Aster 30 from MBDA, which was formed by the merger of French Aérospatiale-Matra Missiles, Italian Alenia Marconi Systems and British Matra BAe Dynamics in December 2001.

After taking strong positions for the supply of helicopters, armoured vehicles and multi-role warships to Romania, MBDA has been lobbying for the missile contract as well. In an interview with hotnews.ro, the company’s management promised to set up a local production base. The prior approval of sale issued by the US state department hints, however, that the jury is still out.

Ahead of the approval of the defence spending package, other European equipment suppliers are also eying investments in Romania.

In April, Airbus Helicopters and Romania’s IAR signed a general agreement on exclusive cooperation on the heavy twin engine H215M multi-role helicopter. Under the agreement the Romanian company will become the prime contractor for the H215M for any future order by the Romanian defence ministry to replace their ageing fleet.

Meanwhile, in June Romania’s Uzina Automecanica Moreni and German military technology group Rheinmetall signed documents on setting up a joint venture (Romanian Military Vehicle Systems) aimed at producing armoured 8x8 vehicles.

Another deal under which Romania’s government was planning to order four multi-role warships from Damen Galati shipyards for around €1.6bn is in limbo after failing to secure parliamentary approval. But Damen remains in poll position for the contract, given its local production base.