October 18 (SeeNews) - Romania's economy ministry said on Wednesday it signed a memorandum of understanding (MoU) with US-based defence contractor Raytheon for maintenance of Patriot missile defence systems.
This is the first step towards the acquisition of Patriot missile defence systems from Raytheon by Romania, the ministry said in a press release.
The MoU was signed by Romanian aircraft construction and repair company Aerostar [BSE:ARS] on behalf of the economy ministry.
In July, the US State Department cleared the sale of seven Patriot air defence systems to Romania for an estimated $3.9 billion (3.42 billion euro).
"The development of the most advanced anti-missile system is not only a guarantee for Romania's security but also for the fulfilment of some commitments assumed by Romania as a partner state within NATO," the ministry said.
In March, Romania asked for the delivery of seven Patriot Configuration-3+ Modernized Fire Units consisting of seven radar sets, seven engagement control stations, 13 antenna mast groups and 28 launching stations. Also included are 56 Patriot Guidance Enhanced Missile-TBM missiles, 168 Patriot Advanced Capabilty-3 Missile Segment Enhancement missiles and seven Electrical Power Plants III.
Under the possible deal, Romania will also obtain equipment for communications, tools, test, training and support, prime movers, generators, technical documentation, spare and repair parts, personnel training and full technical support. The prime contractors will be US defence giants Raytheon Corporation and Lockheed-Martin.
Aerostar SA is a leading Romanian aerospace company specialised in repairing and upgrading military aircraft, producing light aircraft, hydraulic equipment for aviation and piston engines as well as electronics and other specialized equipment. The company exports its products to various countries in Europe, Asia, North America and the Middle East. Its shares traded up 14.91% at 4.7 lei on the Bucharest Stock Exchange as at 1614 CET.
On Tuesday, Romania's National Defence Council (CSAT) approved the country's participation in the EU's defence initiative for Permanent Structured Cooperation (PESCO).
PESCO offers a possibility to member states that meet criteria for advanced military capabilities and wish to make additional commitments to cooperate on a structured basis. It aims to be an enhanced form of cooperation within the Common Security and Defence Policy in order to develop defence capabilities at the European level.
The PESCO agreement was signed in Tallinn, Estonia, on September 7 by the defence ministers of EU member states. The initiative could be launched by the end of 2017.
Romania, which joined NATO in 2004, plans to spend 9.8 billion euro until 2026 to boost its defence capabilities, CSAT said in August.
In 2016, Romania's defence spending was 1.48% of GDP. In order to reach the 2%/GDP target agreed to at the 2014 NATO summit in Wales, Romania has added 4.9 billion lei ($1.15 billion/1.07 billion euro) to its 2017 defence budget.
($= 0.8502 euro)