Overview
The Czech Republic became a member of NATO in 1999. To a large extent the Czech Army (CzA) still uses inventory dating back to the times of the Warsaw Pact. The replacement of obsolete equipment to comply with the NATO standards is a priority of the Czech Army. Some major acquisitions have started but were complicated by the Covid pandemic. Russia’s aggression against Ukraine accelerated defense spending and modernization.
Planned MoD budgets were originally roughly $3.8 billion (CZK 89 billion) and $4.3 billion (CZK 100 billion) in 2022 and 2023 respectively. The Czech Government approved an additional CZK 22.7 billion for MoD for the necessary modernization of the Czech Army and the development of defense capabilities in the context of the ongoing aggression of the Russian Federation in Ukraine. The Ministry of Defense will manage a total amount of $5.1 billion (CZK 111.8 billion) in 2023 which accounts for 1.5 percent of GDP. This is an increase from 1.3 percent in 2022. The government endeavors to spend two percent of its GDP on defense by 2025 at the latest - thus fulfilling its membership commitment to NATO.
During the full year before the Covid pandemic, 90 percent of purchase agreements (worth $1 billion) were signed with local companies; nevertheless, the total value of contracts awarded was more than $2 billion. A vast majority of public contracts awarded are administered as restricted tenders, i.e. only pre-selected companies are invited for bidding.
U.S. Military Exports to the Czech Republic (US$, thousands)
End-Use Code |
Value 2018 |
Value 2019 |
Value 2020 |
Value 2021 |
(50000) Military aircraft, complete |
0 |
0 |
0 |
0 |
(50010) Aircraft launching gear, parachutes, etc. |
1,338 |
7,008 |
633 |
1,085 |
(50020) Engines and turbines for military aircraft |
15,102 |
12,633 |
13,458 |
13,057 |
(50030) Military trucks, armored vehicles, etc. |
126 |
248 |
232 |
2,238 |
(50050) Tanks, artillery, missiles, rockets, guns and ammunition |
1,981 |
5,074 |
2,345 |
3,032 |
(50060) Military apparel and footwear |
462 |
433 |
1,266 |
132 |
(50070) Parts for military-type goods |
5,301 |
2,163 |
4,583 |
4,238 |
Units: $ thousands
Source: U.S. Census Bureau - Foreign Trade Statistics, Products by 5-digit End-Use Code
Leading Sub-Sectors
The newest conceptual documents “Concept of the Build-up of the Armed Forces of the Czech Republic 2030“, and “The Long-term Perspective for Defense 2030” describe the political and military ambitions of the Czech Republic. The documents specify both strategic and non-strategic projects with a price tag over $4 billion. Updates can be found at MoD’s web pages.
Opportunities
The Ministry of Defense (MoD) has identified eight “strategic” projects with a total cost of $5.9 billion (CZK 128 billion) and 19 “priority modernization” projects with a cost of $4.3 billion (CZK 100 billion). More information can be found in the market snapshot “Military Acquisitions in the Czech Republic 2023” available from the U.S. Commercial Service Prague – see contact info below.
Trade Shows
- September 16-17, 2023, NATO Days & Czech Air Force Days 2023
- October 16-18, 2024, Future Forces Forum
- May 28-30. 2025, IDET 2025
Resources
- Ministry of Defense of the Czech Republic
- Ministry of Defense of the Czech Republic, Armaments and Acquisition Division
U.S. Commercial Service Contact: Zdenek.Svoboda@trade.gov.