Germany to buy new Leopard tanks in €843 million defence order

Germany plans to buy 18 battle tanks and 12 self-propelled howitzers from domestic manufacturers Rheinmetall AG and Krauss-Maffei Wegmann GmbH as part of an order worth a total of €843 million ($910 million) to replace equipment sent to Ukraine. 

The purchase, which also includes spare parts, is expected to be approved by the budget committee in the lower house of the German parliament on Wednesday, according to people familiar with the matter and defence ministry documents obtained by Bloomberg. 

A spokeswoman for the defence ministry confirmed that the purchase plan to replace the Leopard 2 tanks was forwarded to the budget committee, declining to comment further. Rheinmetall referred queries to Krauss-Maffei Wegmann, which in turn didn’t respond to a request for comment. 

Chancellor Olaf Scholz’s government will pay €525.6 million for the Leopard 2 tanks and €190.7 million for PzH 2000 howitzers, according to a defence ministry paper. The supply of spare parts for the Leopards is worth €126.6 million. The first tanks are to be delivered in 2026 at the latest, said the people, who asked not to be identified prior to formal approval.

The deal is a first step with Germany seeking to secure options for 105 Leopard tanks in a deal worth up to €2.9 billion. 

Germany abandoned a policy against sending lethal weapons into combat zones in response to Russia’s war in Ukraine. The government in Berlin has delivered 18 Leopard tanks, while the rapid-fire PzH 2000 was among the first heavy weapons handed over to Kyiv. 

Shortly after the invasion last February, Germany set aside €100 billion to upgrade its military in a special fund outside its normal budget. But since this is a replacement order, the funds will be part of regular spending.