Poland's Government Adopts Draft Law on Ammunition Production Funding

Prepared by the Ministry of State Assets (MAP), the draft stipulates that MAP will transfer PLN 2 billion to the Capital Investment Fund (FIK) by the end of this year, using resources provided by the Ministry of Defense (MON). An additional PLN 1 billion for ammunition production funding will be deposited into the FIK account next year. 

„The expansion of Poland’s large-caliber ammunition production base is becoming a reality! The Council of Ministers has approved a draft law that will allocate nearly PLN 3 billion to the Capital Investment Fund,” the Minister of Defence wrote on social media. 

On Tuesday, Marcin Kulasek, the Deputy Minister responsible for the state defence industry at MAP, stated that following the transfer of PLN 2 billion from the state budget and the remaining portion in the form of treasury securities, FIK will sign investment agreements with selected companies and use the funds to increase their capital. These resources can only be used for the construction, expansion, and equipping of ammunition factories.  

Kulasek emphasized that the currently allocated PLN 3 billion is „definitely not the final amount”. He explained that the government decided to prepare this targeted legislation to ensure unused funds, which would otherwise have to be returned to the state budget, are allocated to ammunition production by the end of December.

According to MAP’s assumptions, funding will not be limited to a single factory but will support several plants within the Polish Armaments Group (PGZ). Kulasek highlighted the importance of diversifying the production sites for ammunition components for security reasons. Private companies will also be eligible to apply for funding from FIK. Allocating funds from the Fund will be linked to the state treasury acquiring shares in the recipient company. 

The Capital Investment Fund has so far been used to finance the construction of the Narew air defence system, with PLN 3.88 billion allocated through 2030. 

On Tuesday, the government also adopted, in a classified session, a resolution amending a previous one that established the long-term National Ammunition Reserve Program under the previous administration. „Once the law on ensuring funding to increase ammunition production capacity is enacted, we will proceed with steps related to the National Ammunition Reserve Program,” Kulasek announced, withholding further details due to the classified nature of the document. The NRA program, adopted in March 2023, aims to procure ammunition and expand ammunition production capabilities. PLN 12 billion was allocated for procurement, while PLN 2 billion was set aside for production expansion.