Last year, the Czech Republic witnessed a remarkable surge in the value of its arms and security exports, reaching CZK 30 billion, nearly doubling from the previous year. This revelation was shared today by Jiří Hynek, the President of the Association of Defence and Security Industry of the Czech Republic. He emphasized that these exports marked an all-time high, with the production volume increasing by approximately one-fifth, surpassing 50 billion crowns compared to the figures from 2021.
Hynek expressed his belief that the record-breaking export levels of 2022 are unlikely to be replicated. He attributed this surge to the Russia-Ukraine conflict, which not only led to increased supplies to the conflict zone but also heightened concerns about the potential spread of the conflict to other nations.
A significant portion, around 45 percent, of these exports found their way to Ukraine, with approximately 70 percent consisting of ammunition, primarily in large calibers. Additionally, Czech companies supplied Ukraine with ground equipment, including cars, tanks, armored vehicles, howitzers, and rocket launchers.
It’s worth noting that a substantial portion of the exports comprised materials produced in previous years, particularly ammunition, which accounted for more than half of the total exports in 2022, in contrast to around 15 percent in previous years. Prospects for this year’s exports are estimated at around 20 billion crowns.
In the long term, Hynek highlighted that weapons and security materials are predominantly exported to the United States, European Union nations, the Middle East, and Southeast Asia, while exports to Africa have also seen growth.
The production volume in 2022 witnessed a significant year-on-year increase of approximately one-fifth, reaching over 50 billion crowns. However, Hynek pointed out that while it was a prosperous year for many companies within the Defence and Security Industry Association, those with a lower share of defense production faced challenges. Rising costs, particularly in the energy sector, were a notable concern for firms during the year.
Hynek disclosed that there were 1,500 export licenses granted in the previous year, up from 1,200 in the preceding year. These licenses are a prerequisite for businesses seeking to export military equipment, and their approval involves the Ministry of Industry and Trade, along with the ministries of foreign affairs, interior, and defense.
The Defence and Security Industry Association, representing over 90 percent of Czech companies in the defense and security sector, is primarily composed of small and medium-sized enterprises that predominantly focus on civilian production.
Furthermore, Prime Minister Petr Fiala shared that between January and May this year, the Czech Republic provided Ukraine with various military assets, including 24 tanks, 76 infantry fighting vehicles (IFVs), and 645 anti-tank guided missiles. Additionally, these supplies included 16 specialized vehicles for the air defense system, 57,000 rounds for cannons and howitzers, as well as 144 anti-aircraft guns. Minister Jana Černochová noted that there is still equipment in the army’s inventory that can be provided to the besieged country.
Source: ceskenoviny.cz
