Head of the Lithuanian Defence and Security Industry Association (LGSPA) Valdas Tutkus, who is resigning from his post, says that purchase of the German armoured fighting vehicles Boxer will cost at least EUR 500 million for Lithuania, not counting the cost of building a service base for them.
Valdas Tutkus
© A.Didžgalvio nuotr.

According to Tutkus, the tender organised by the Ministry of National Defence has more to do with politics than economics. Also, he says that he knew months ago that the Boxer was going to be chosen from all the offered armoured vehicles. The outgoing LGSPA director says that the final price for these armoured vehicles will be up to 35 percent above other offers.

"I do not question the choice of the political leadership, nor did I question it earlier. We all understand the importance of Germany to the European Union and Lithuania. However, what I do not understand is why the price of the Boxer is some 35 percent bigger than of vehicles made by other companies. The political decision should not mean that we completely ignore the price," Tutkus says.

The LGSPA head also notes that the Boxer is used only in the Dutch and German armies, therefore, if Lithuania buys these armoured vehicles, it will have to build a full service base on its own. "So, this way their purchase will definitely cost much more than EUR 0.5 billion. How much more will depend on the state's negotiators," says the former chief of the Lithuanian Armed Forces.

Meanwhile, during its extraordinary sitting on Monday, the LGSPA decided to postpone their decision on Tutkus' resignation.

Lieutenant General (Ret) Valdas Tutkus was appointed as LGSPA CEO on 1 July 2015.

On 10 September, he announced about his decision to step down as he said that he felt the pressure of some financially interested groups against the association's companies in order to weaken their competitive position.

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