The Council of Ministers adopted a draft law on Tuesday to ensure financing for activities aimed at increasing the production capacity of ammunition, reports Polish media outlet Business Insider. The draft, submitted by the minister of state assets, allocates PLN 3 billion (€690 million) to the cause, more than half of which will come from the Polish Ministry of National Defense.
The new regulations will enable the creation of a mechanism for financing the domestic arms industry to increase production potential for strategic ammunition.
“The war in Ukraine shows that long-range artillery and having adequate supplies of ammunition for them are key assets on the front. It is therefore necessary to strengthen the Polish army by expanding and diversifying the production base of large-caliber ammunition,” read a statement by Poland’s Government Information Center.
The head of the Ministry of National Defense, ładysław Kosiniak-Kamysz, wrote on X that “the expansion of the production base for large-caliber ammunition in Poland is becoming a fact! (…) Co-financing companies responsible for the production of ammunition is an investment in security.”
The new regulations create a legal basis for transferring funds to the Capital Investment Fund, which will be used to recapitalize companies responsible for the production of ammunition.
For this purpose, the Capital Investment Fund will receive approximately PLN 3 billion. PLN 2 billion will come from the budget of the Ministry of National Defense, while the remaining funds will be transferred in the form of treasury securities held by the Government Agency for Strategic Reserves.
The funds transferred to the Capital Investment Fund will be used to acquire or take up shares/stocks by the Polish State Treasury represented by the minister of state assets.
The new regulation will enter into force on the day following its publication in the Journal of Laws.
