Farewell Naval Group! On Tuesday, August 8, the Romanian government canceled the purchase of four Gowind 2500 corvette vessels from this French shipbuilding company. The decision marks the failure of a deal whose history began in 2018, when Romania launched a call for tenders for the acquisition of four corvettes and the modernization of two old frigates belonging to the Romanian Naval Forces. This choice could provide the US with a new opportunity to strengthen its already strong presence.
In 2019, Naval Group scored a surprise win against Dutch group Damen with a €1.2 billion contract for the purchase of four Gowind 2500 corvettes equipped by European multinational MBDA. Damen, which had proposed a contract worth €1.25 billion, had pledged to deliver more quickly the Sigma 10514 corvettes equipped by American companies Boeing and Raytheon. The Dutch group also had the advantage of being present at two shipyards in Romania, at Galati, a port on the Danube in the east of the country, and at Mangalia, another port on the Black Sea in the southeast.
The purchase of the Gowind 2500 corvettes was intended to balance military investment in Romania between France and the US, who benefit from attractive contracts. Relations between Romania and Naval Group have not been smooth, however. The Dutch company Damen challenged Romania's choice in court. Once legal recourse had been exhausted, the contract was further delayed by disagreements between the French firm and its Romanian partner over responsibilities to be shared.
The project received fresh impetus in June 2022, when France signed a letter of intent providing for an ambitious support plan for the Romanian Naval Forces. But the project continued to drag on and, in June, Defense Minister Angel Tilvar issued an ultimatum to Naval Group. The hammer dropped on August 8.
The government has also ruled out returning to the Damen option. Will Romania once again turn to Washington for equipment? Since 2021, the US has been allowing the country to enter into military contracts with its partners, with no obligation to make a down payment for equipment.
Russia's war with neighboring Ukraine has prompted Romanian authorities to urgently modernize their poorly-equipped army. Bucharest is particularly keen to strengthen its naval fleet in the Black Sea, whose obsolete equipment makes it vulnerable. With a conflict on its border, Romania is bolstering its military industry. "We are facing a long-term war," said Mircea Geoana, former Romanian foreign minister and NATO deputy secretary since 2019. "We need to increase our industrial production in order to continue supporting Ukraine."
You have 35.84% of this article left to read. The rest is for subscribers only.