Czech republic Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in czech republic, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Defense
Last published date:

Overview 

The Czech Republic became a member of NATO in 1999. To a large extent the Czech Army (CzA) still uses inventory dating back to the times of the Warsaw Pact. The replacement of obsolete equipment to comply with the NATO standards is a priority of the Czech Army. Some major acquisitions have started but were complicated by the Covid pandemic. Russia’s aggression against Ukraine accelerated defense spending and modernization. 

Planned MoD budgets were originally roughly $3.8 billion (CZK 89 billion) and $4.3 billion (CZK 100 billion) in 2022 and 2023 respectively. The Czech Government approved an additional CZK 22.7 billion for MoD for the necessary modernization of the Czech Army and the development of defense capabilities in the context of the ongoing aggression of the Russian Federation in Ukraine. The Ministry of Defense will manage a total amount of $5.1 billion (CZK 111.8 billion) in 2023 which accounts for 1.5 percent of GDP. This is an increase from 1.3 percent in 2022. The government endeavors to spend two percent of its GDP on defense by 2025 at the latest - thus fulfilling its membership commitment to NATO. 

During the full year before the Covid pandemic, 90 percent of purchase agreements (worth $1 billion) were signed with local companies; nevertheless, the total value of contracts awarded was more than $2 billion. A vast majority of public contracts awarded are administered as restricted tenders, i.e. only pre-selected companies are invited for bidding.  

                                       U.S. Military Exports to the Czech Republic (US$, thousands) 

End-Use Code

Value 2018

Value 2019

Value 2020

Value 2021

(50000) Military aircraft, complete 

0

0

0

0

(50010) Aircraft launching gear, parachutes, etc.

1,338

7,008

633

1,085

(50020) Engines and turbines for military aircraft

15,102

12,633

13,458

13,057

(50030) Military trucks, armored vehicles, etc.

126

248

232

2,238

(50050) Tanks, artillery, missiles, rockets, guns and ammunition

1,981

5,074

2,345

3,032

(50060) Military apparel and footwear

462

433

1,266

132

(50070) Parts for military-type goods

5,301

2,163

4,583

4,238

Units: $ thousands

Source:  U.S. Census Bureau - Foreign Trade Statistics, Products by 5-digit End-Use Code

Leading Sub-Sectors

The newest conceptual documents “Concept of the Build-up of the Armed Forces of the Czech Republic 2030“, and “The Long-term Perspective for Defense 2030” describe the political and military ambitions of the Czech Republic. The documents specify both strategic and non-strategic projects with a price tag over $4 billion. Updates can be found at MoD’s web pages.

Opportunities

The Ministry of Defense (MoD) has identified eight “strategic” projects with a total cost of $5.9 billion (CZK 128 billion) and 19 “priority modernization” projects with a cost of $4.3 billion (CZK 100 billion).  More information can be found in the market snapshot “Military Acquisitions in the Czech Republic 2023” available from the U.S. Commercial Service Prague – see contact info below.

Trade Shows

Resources  

U.S. Commercial Service Contact: Zdenek.Svoboda@trade.gov. 

 

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