CUTTING RED TAPE ⟩ Lithuania Makes Unusual Concessions to Expedite Rheinmetall Ammo Factory Launch

The Lithuanian government has granted emergency project status to a €180 million artillery ammunition factory to be established by the German defense contractor Rheinmetall in the Radviliškis district. This designation allows the project, named the Lithuanian Center of Excellence for Ammunition, to commence construction without prior permits, which will be obtained before the project's completion.

Economy and Innovation Minister Aušrinė Armonaitė emphasized that this status triggers expedited procedures, enabling swift development and accelerated issuance of building permits. The Ministry of National Defense highlighted the critical need for this facility to ensure a reliable supply of 155 mm ammunition for the Lithuanian Armed Forces and foreign units stationed in Lithuania.

Approved amendments by the Seimas in April have streamlined processes for major Western arms and ammunition manufacturers, including Rheinmetall, to quickly establish production facilities in Lithuania. This new factory is expected to create at least 150 jobs. Lithuanians will be the first Baltic nation to host an international defense industry project of this magnitude.

Defense Bonds Out Soon

The Lithuanian Seimas (Parliament) has recently legislated the issuance of defense bonds as part of a comprehensive defense budget package. These bonds, set to be issued after October 1 with the enactment of the National Defense Fund law, are designed to replace the current government savings bonds. Finance Minister Gintarė Skaistė announced that the defense bonds will offer lower interest rates compared to the existing savings bonds.