As a former member of the Warsaw Pact, Romania still has large quantities of obsolete equipment from the Cold War. In order to meet the standards of NATO to which the country belongs, Romania must either completely replace these models with modern, Western equipment or heavily modify the units to bring these platforms in line with the STANAG (Standardization Agreement) documents. According to Global Data, a data and analytics company, both options offer significant business opportunities for companies interested in the Romanian market.
The latest report by Globa lData, “Romania Defense Market 2024-2029”, shows that the share of Romanian procurement spending in the total defense budget will increase significantly from 33.8 percent in 2020 to 45.2 percent in 2029. This exceptionally high percentage is necessitated by the replacement of old equipment and efforts to revitalize domestic defense production.
Wilson Jones, defense analyst at Global Data, commented: “The Ukraine war (-> latest news from the Ukraine war) has made the purchase of Russian equipment both uneconomical and politically difficult, increasing the likelihood of new systems being purchased. However, Romania’s limited economic strength and real procurement budget limit its ability to acquire entirely new fleets of vehicles.” In the past, Romania has opted to use the two options it has to modernize its military. The Romanian Army’s TR-85 main battle tank is an example of modernization. It was originally a licensed version of the T-55, which has now been modernized with Sabot ammunition, German engines, Western fire control computers and advanced sensors. In addition, the Romanian BMPs (amphibious infantry fighting vehicles) have been modified to carry Western weapons, simplifying logistics as ammunition requirements match those of NATO allies. At the same time, the Mowag Piranha APC and the acquisition of the F-35A fighter aircraft (-> Lockheed with F-35 also successful in Romania) are examples of the procurement of new systems. https://militaeraktuell.at/bundesheer-strassenbahn-in-wien-vorgestellt/ Jones continues: “The Romanian defense budget until 2022 followed a trend seen broadly across Europe and particularly in the NATO alliance: a period of slight fluctuation and stagnation, followed by a dramatic increase as the security situation deteriorated following Russia’s full-scale invasion of Ukraine in February 2022.” Jones concluded: “The prominent role that cruise missiles and drones have played in the war in Ukraine, and the complex systems required to defend against them, have changed assumptions about how wars are fought in the 21st century. These lessons will influence the procurement decisions of NATO countries in the future. Romania is currently acquiring Patriot batteries and operating Gepard anti-aircraft guns, which have proven useful in Ukrainian operations. The country is likely to adapt its procurement policy to these new developments.”
