According to the report, short supplies of gunpowder, plastic explosives and TNT left the defense industry unable to fulfill EU orders for Ukraine, irrespective of how much money is invested in addressing this bottleneck.
The newspaper claims the Ukraine conflict laid bare Europe's "inadequate" arms stocks and poor domestic production capacity. An anonymous German official told the daily that the fundamental problem is that "the European defence industry is not in good shape for large-scale war production."
Furthermore, a Czech state-owned manufacturer Explosia — one of the largest suppliers of explosives to ammunition factories — told the newspaper that it is running the production of propellants for 155mm artillery shells "at full capacity" and would not increase output until 2026.
Meanwhile, defense industry executives and officials warn that higher demand for arms and ammunition may drive up their prices, which have already increased by some 20% over the past year.
Antonio Caro, the CEO of Fabrica Municiones de Granada, one of Spain's two producers of 155mm artillery shells, said that the cost of raw materials had "doubled and in some cases tripled." A typical shell now costs 850 euros ($916), around a fifth more than before the start of Russia's military operation in Ukraine, Caro told The Financial Times.
Another issue is that European explosives manufacturers cannot increase their production capacity overnight. Chair of the Defence and Security Industry Association of the Czech Republic Jiri Hynek told the daily that it may take at least three years to build up gunpowder output.
Other European factories producing explosive materials are also working at full capacity, making it necessary to "start looking in India, in Korea, in other countries further away," Caro said.
Western countries increased their military support for Ukraine after Russia launched a military operation there on February 24, 2022. In December, Kiev said it hoped to receive tanks from Western countries in 2023.
In February, Ukraine's government started negotiations with its allies on the supply of longer-range missiles and jets to prepare for a counter-offensive. The Kremlin has repeatedly warned against further escalation that could lead to direct involvement of the United States and NATO in the conflict.