Purchase of Boxer armoured vehicles to cost EUR 343m

Ljubljana – The purchase of 45 Boxer armoured vehicles that Slovenia plans to acquire through the Organisation for Joint Armament Cooperation (OCCAR) will cost EUR 343 million including tax, the Defence Ministry revealed on Tuesday after the agreement with the OCCAR entered into effect following a Constitutional Court ruling.

The deal involves 45 eight-wheeled vehicles with armament, logistics services and project management costs. Value added tax, which comes to nearly EUR 62 million, will be paid in Slovenia, shows a press release from the Defence Ministry.

One vehicle is slated for delivery in 2023, followed by nine in 2024, 22 in 2025 and 13 in 2026.

The price can increase by no more than 2.8% per year, regardless of potential increases in costs of materials. There were no intermediaries in the deal.

“The per-vehicle price Slovenia will pay is the same as paid by other countries for the same configuration,” the ministry said.

The purchase is “essential for the creation of the Slovenian Armed Forces’ key capacity, which has been delayed for a long time – a medium-sized battalion battlegroup” that Slovenia will contribute “as a serious NATO member.”

This is the first time the ministry has disclosed the price, having previously said that price negotiations would start once the agreement is ratified.

The revelation comes just hours after the Constitutional Court declared that the National Assembly did not act in an unconstitutional fashion when it voted to ban a referendum on the defence deal proposed by the Left. It agreed with MPs that international treaties cannot be subject to referenda.

The Left has long opposed higher defence spending and reiterated today that the purchase was senseless and should be stopped, as it decried Defence Minister Matej Tonin’s decision to sign the contract within days saying this was not legitimate.

“Voters clearly said on Sunday they want change and other priorities for the future, they don’t want old weapons dealers to continue their senseless purchases,” Left deputy group leader Matej T. Vatovec said today.

Boxers are provided via OCCAR by the industrial consortium Artec. OCCAR will help with the delivery and in the resolution of any complications, the Defence Ministry said.