Following the news that Raytheon and state-owned Romarm have signed a memorandum of understanding (MoU) for the Romanian firm to domestically manufacture the SkyCeptor missile;

Madeline Wild, Associate Defense Analyst at GlobalData, a leading data and analytics company, shares her view:

“The Russian invasion of Ukraine has placed a new level of urgency on improving the Romanian defense environment. The government announced that the defense budget would reach 2.5% of GDP by 2023, far surpassing the 2% target imposed by NATO. GlobalData figures show the 2022 defense budget at $6.3 billion, an increase of 30.5% against 2021 spending levels. Whilst this level of annual growth cannot be sustained, the budget is forecast to grow even further to $8.2 billion in 2027, which equates to 2.8% of GDP.

“Collaboration with a US defense manufacturer like Raytheon will allow Romania to progress in their goal of developing a self-sufficient and advanced defense industry. It is worth noting that whilst the MoU has been signed directly with Raytheon, SkyCeptor is a joint venture between Raytheon and Rafael Advanced Defense Systems. Since the collapse of the Soviet Union, the government has undertaken a series of intensive reforms to try to get both the Ministry of National Defense, and the broader defense industry, in line with Western allies. At present, Romania is heavily reliant on its NATO and EU allies for its security in terms of industrial capabilities and the collective defense principles enshrined in the NATO charter.

“The recent announcement about the SkyCeptor missile production is evidence of another step in the development of the industry. Specialization has been focused on the manufacture of small arms and ammunition. The production of missiles will help to further upskill the Romanian industry as the SkyCeptor can be used in the Patriot missile defense system, which is currently being procured by Romania and Poland.”