Romania cancels Gowind deal with Naval Group

By Defence Industry Europe

Romania's Ministry of National Defence announced the cancellation of a long-anticipated deal to procure four Gowind corvettes from French company Naval Group. The decision came after both the company and its local industry partner failed to meet the contract signing deadline.

Naval Group, a renowned shipbuilding firm, secured the contract in 2019 to construct four Gowind corvettes for Romania and modernize two existing frigates, amounting to EUR 1.2 billion. The partnership was formed with Romanian company Santierul Naval Constanta.

 

 

However, the deal encountered multiple setbacks, including legal disputes that initially delayed progress. The impasse was further exacerbated by the two companies’ inability to resolve disagreements regarding escalating costs.

Romania’s naval forces have been the least modernized among its military branches. In response to Russia’s incursion into Ukraine, Romania, a member of NATO since 2004 and the European Union since 2007, has considerably increased its defense expenditure to 2.5% of GDP this year.

 

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With a 650km border adjoining Ukraine, Romania plays a strategic role in regional security. The nation houses a U.S. ballistic missile defense system and, as of the previous year, hosts a permanent NATO battlegroup led by France on its soil. The cancellation of the warship deal underscores Romania’s determination to address its defense needs amid evolving geopolitical challenges.

 

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