The amendments to the law aim to more precisely define the calculation of obligations, more clearly allocate the responsibility of institutions, simplify procedures, and create conditions for faster decision-making.
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If the amendments are adopted, the threshold value of military equipment purchase-sale contracts, from which industrial cooperation would apply, will be increased, the conditions for calculating contractual obligations will be clarified, and the administrative burden will be reduced, according to the explanatory note of the project.
The project proposes to regulate this cooperation only when real long-term value is created for this industry, while reducing the impact of legal uncertainty, procedural duplication, and contractual risks of suppliers on the final price of military equipment.
According to the Ministry of National Defence, which prepared the amendments, the law adopted in 2024 created the prerequisites to develop this industry, encourage investments, joint production, technology transfer, the development of new defense products in Lithuania, and opportunities to integrate into international supply chains.
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However, after the new institute began to be applied, it became clear that some of its provisions delay the acquisition of military equipment and cause risks that lead foreign suppliers to increase its price.
“Due to longer coordination procedures and insufficiently clear allocation of responsibility, purchases of military equipment of strategic importance may be delayed, for example, acquisitions of military equipment necessary to develop the Lithuanian Armed Forces’ First Mechanized Division by 2030,” the explanatory note of the project states.
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The amendments will continue to be considered by the Seimas.
