Exclusive documents: the CSG of Michal Strnad offered ammunition to the Czech part of the initiative at a much higher price

The Czech Republic adds credibility to the margins of Michal Strnad's Czechoslovak Group through the ammunition initiative. This, of course, both annoys Ukraine and donor states, which find it difficult to justify the expenditure to their citizens.

This information was first reported by the German daily Handelsblatt. Security Magazin has documents from foreign sources that confirm these findings. At the same time, it also confirms the words of Senator Lukáš Wagenknecht (for the Pirates) about the uneconomic nature of the specific supplies. In this case, it is the offer of Excalibur Army from the CSG group. Like him, we do not want to damage the ammunition initiative; however, economy and transparency are key parameters for its success, as it must ultimately be defended to the public.

 

Senator Wagenknecht and the Ukraine Munitions Initiative

 

„The Czech Ammunition Initiative is a great project where the Czech side has managed to raise significant funds to support Ukraine against Russian aggression." These are the words used by Senator Wagenknecht on the social network X to introduce the publication of his intelligence report containing findings on the wastefulness of a particular contract implemented by the CSG company Excalibur Army as part of the Ammunition Initiative. The company's margins on the contract reported by the Senator are an issue that has the potential to jeopardize the success of the entire initiative. The Ministry of Defence is undoubtedly aware of this.

In his report, the Senator praises the efforts and contribution of the Czech administration in raising awareness and the importance of assistance to Ukraine, including limiting competition from individual donor states which, without coordination, would create upward pressure on ammunition prices. He therefore identifies the ammunition initiative as key. Like the Senator, we believe that the initiative must continue with maximum effort. Cost-effectiveness and efficiency are crucial parameters that influence the tangible outcome of the initiative, and transparency is key to the confidence of the Czech public in the process.

"Senator Wagenknecht of the Pirate Party is spreading lies and misinformation in the public space and is seriously damaging the Czech Republic," czech defence minister Jana Černochová wrote on her X account last Wednesday, quoting a press release from the Ministry of Defence that read, among other things, "Senator Lukáš Wagenknecht has published unsubstantiated information out of context."

However, since the 12-page report that the Senator wanted to present to his colleagues on the Standing Committee on Oversight of Public Funds contains a wealth of data, and since Wagenknecht has also repeatedly stated that the data contained therein have also been confirmed by the Ukrainian side, that is, by the relevant committee of the Ukrainian Parliament, with the knowledge of the Ukrainian Ministry of Defence, it is appropriate to examine the document further. According to the findings of our editorial office so far, the claim of unsubstantiated information is exaggerated to say the least. And the whole affair can be expected to have a sequel.

 

Delivery terms and prices of direct purchases of Ukraine and Czech Ammunition Initiative

 

Both Handelsblatt and Senator Wagenknecht compare the prices at which Ukraine has purchased 155mm M107 artillery fragmentation shells this year with the prices of two deliveries of the same type of ammunition under the Czech Ammunition Initiative. While the Ministry of Defence of Ukraine has been procuring stockpile ammunition at unit prices of €2,300-2,750 and €2,950 for newly manufactured ammunition, under the Czech initiative, donor states are paying €3,200 on at least two occasions, based on the Excalibur Army bid.

Security Magazin is the first to provide copies of all the documents

 

Firstly, these are the bids for the AMOS agency dated 20 February this year. One is for 190,000 rounds of ammunition and the other for 100,000 rounds of the same type of grenades (with M4A2 or M119 propelling charges). According to the FCA clause, the price includes delivery of the ammunition to the Czech Republic, not to Ukraine.

 

 

The other two documents are dated 21 February and 22 February and are the offer of the Turkish company Makine ve Kimya Endüstrisi. The first for up to 90 000 of the type of grenades mentioned above for the Ukrainian Defence Acquisition Agency. The second for an identical quantity of the same ammunition for the Excalibur Army. Both at a unit price of USD 2 700, or approximately EUR 2 500.

 

The delivery terms are based on the EXW clause, i.e. the buyer picks up the ammunition at the seller's factory. Senator Wagenknecht mentions this delivery in his report in the table on purchases by the Ministry of Defence of Ukraine on page 8, on the last line, with a price of EUR 2 500.

For the previous six rows of his table, the clause DAP Ukraine + 600 km is given, which means that this ammunition was delivered directly to Ukraine and the amount also covered the cost of transport for up to 600 km further into Ukraine. The table does not indicate the quantity, but neither does it indicate the seller, apart from the supplying country. According to the documents published above and available to our editorial office, the supplier from the Czech Republic is again Excalibur Army and it is 3,000 and 2,000 grenades at 2,300 euros each. From Poland, it is PHU Lechmar Sp.z.o.o., which sold 29,978 grenades to Ukraine in December at EUR 2,650, 60,000 grenades in February at EUR 2,750 and 89,000 grenades in May at the same price. The Turkish company Arca Savunma Sanayi sold 20 000 newly manufactured grenades to Ukraine in January at EUR 2 950 each.

To repeat and emphasise: the price includes delivery to Ukraine + 600 km; the average price per grenade for the quantities indicated (203 278 pieces in total) was EUR 2744 from December to May. If the February bid price under the Czech Ammunition Initiative is 3200 euros with delivery to southern Bohemia (to the Excalibur Army depot), the additional cost entails transporting the ammunition to and within Ukraine, and this amount is therefore not final, we are certainly comparing comparables and the conclusion is clear.

Senator Wagenknecht speaks of a price of 2,700 euros for one grenade of this type, which was customary at the time and place. His claim is substantiated and the figure is confirmed by a member of the Ukrainian Parliament who has verified it with the Ministry of Defence. Ukraine therefore appears to have paid EUR 2 700 for one grenade, and for that amount it was delivered for the direct use of its artillery. Germany, as part of the Czech munitions initiative, is paying Excalibur Army €3,200 for the same grenade, which will be shipped to southern Bohemia for that amount. 

CSG spokesman Andrej Čírtek following a call for comments added: "I can confirm that CSG companies are participating in the Czech Ammunition Initiative and we are transparent with the Czech Ministry of Defence, which is coordinating the project. For security reasons, we do not disclose the details of individual transactions. I would like to stress that ammunition prices are in line with current market prices and in some cases reflect the necessary logistics or manufacturing operations that are required to deliver a product ready for use. Incidentally, the German media article (reaction note: Handelsblatt article on the Czech munitions initiative) to which you refer quotes the German Ministry of Defence's position that the price is within the current market range."