Romania’s defence ministry has announced the cancellation of a protracted contract to procure four warships from the French company Naval Group. The deal was abandoned after both Naval Group and its junior partner failed to meet the contract signing deadline, according to a statement issued late on Tuesday.
Naval Group, in collaboration with Romanian company Santierul Naval Constanta, had secured a contract in 2019 to manufacture four Gowind navy corvettes for Romania and refurbish two existing frigates at a cost of 1.2 billion euros ($1.32 billion). However, the agreement faced delays initially due to legal disputes, followed by challenges in reaching an agreement on escalating costs.
Romania’s navy lags behind its other military branches in terms of modernization. In response to Russia’s incursion into Ukraine, Romania, a NATO member since 2004 and a European Union member since 2007, augmented its defense expenditure to 2.5% of GDP this year.
Given its 650 km (400-mile) border shared with Ukraine, Romania hosts a U.S. ballistic missile defense system. As of last year, the country also houses a permanent NATO battlegroup led by France on its soil.
