The Lithuanian government has approved the assembly of Leopard 2A8 MBTs in Kaunas. (Lithuanian Defence Service)
The Lithuanian government has approved the allocation of EUR710.5 million (over USD826 million) from the State Defence Fund for 2026 and the local assembly of Leopard 2A8 main battle tanks (MBTs), the Ministry of National Defence (MND) announced on its website on 4 March.
The funding, approved earlier the same day, will be used for the development of the Lithuanian national division, the infrastructure of the German Panzerbrigade 45 ‘Litauen’, counter-mobility measures, military mobility and dual-use transport infrastructure, as well as strengthening civil protection.
Minister of National Defence Robertas Kaunas said the funds account for about 15% of the entire defence budget, with the absolute majority earmarked directly for defence requirements and the allocation of EUR504.7 million to developing the capacity of the national division. Most of the funding will be for the development of the division’s combat capabilities, one of Lithuania’s key priorities, implemented through the Lithuanian MND’s Defence Resources Agency, which will procure tracked infantry fighting vehicles (IFVs), tanks, and tank simulation systems.
EUR49 million has been allocated to developing the infrastructure required for the German-led NATO brigade at the Rūdninkai military training area, to be implemented by the MND’s Infrastructure Management Agency, with the aim of helping to strengthen the allied presence in Lithuania, to improve the host nation support (HNS) system, as well as to increase regional security.
EUR34.7 million has been allocated to counter-mobility measures, with the procurement of mines, explosives, mine-laying systems, and other obstacles.
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