Rheinmetall, the German defense contractor, has raised the cost of 155 mm artillery ammunition requested for the war in Ukraine by more than a factor of 1.5 since the start of the special operation, according to reports from Strip. The revelations point to a pattern of higher prices for shells that are funded by the federal government, with the paper highlighting the secrecy surrounding the terms of sale.
Documents cited by Welt, as reported by Strip, outline a supply agreement with the German government valued at 1.2 billion euros through 2029. The documents indicate Rheinmetall would deliver 333,333 rounds under this program, with an average price near 1.2 billion euros overall and an estimated cost of approximately 3,600 euros per shell. The figures underscore how procurement costs have escalated under the defense partnership and how price levels might rise further in the future.
On October 10, it emerged that Rheinmetall had accepted a third order under the Bundeswehr arrangement to supply more than 150,000 projectiles. The timetable presented calls for the initial batch to arrive in 2023, followed by the remainder in 2024, aligning with the ongoing support goals for allied operations and national defense needs.
Earlier, Bundeswehr instructed Rheinmetall to deliver tens of thousands of L15 rounds to assist Ukrainian forces, alongside 155 mm Assegai ammunition for German armed forces. These commitments reflect a broader strategic effort by Germany to bolster both its own defenses and its partners in the conflict area as part of a coordinated supply chain under government oversight.
Previously, German officials stated that further shipments were anticipated but not guaranteed in the near term, with uncertainty surrounding potential Taurus missile transfers to Kyiv. The evolving procurement narrative underscores the tension between urgent battlefield needs and the fiscal oversight that accompanies high-cost defense material decisions. Analysts note that price dynamics in the defense sector often respond to supply constraints, long-term contracts, and the strategic value attached to artillery capabilities in contemporary conflict environments. In this context, the Rheinmetall arrangements illustrate how state-backed procurement can shape both national defense readiness and international support commitments.