Understand the impact of the Ukraine conflict from a cross-sector perspective with the Global Data Executive Briefing: Ukraine Conflict

The German Ministry of Defence (MoD) is planning to allocate €12bn in additional funds to strengthen the defensive capabilities of Ukrainian soldiers.

This announcement comes after the Budget Committee of Germany’s parliament, Bundestag, granted its approval during a meeting held on 29 March.

The meeting was also attended by German Defence Minister Boris Pistorius.

Out of the total sanctioned funding, around €3.2bn will be provided under the 2023 budget while around €8.8bn will be spared for ‘over-planned commitment appropriations’ that will be extended into the fiscal year 2032.

The commitment appropriations will further help in finalising associated contracts this year and can be fulfilled over the coming years.

Meanwhile, the additional 2023 budget will cover the cost of procuring more military supplies and armaments for the Ukrainian Armed Forces.

The amount will also be used to replace Ukraine’s old weapons and material from the existing inventory of the German Armed Forces (Bundeswehr).

During the same meeting on 29 March, German Bundestag’s Budget Committee also approved the MoD to procure a total of ten 2000 self-propelled howitzers (Panzerhaubitze 2000).

This confirmation marks the initial step towards the replacement of the copies handed over to Ukraine.

Financed under Section 60 of Germany’s federal budget, the self-propelled howitzer deal has an estimated value of €184m. The howitzers will be procured from Krauss-Maffei Wegmann.

The entire effort falls under the German MoD’s Strengthening Initiative.

The new howitzers are being procured to replenish Bundeswehr’s inventory.

Delivery of the new 2000 guns is expected to take place between 2025 and 2026.