We encourage you to read our review of the past week in Central and Eastern Europe:
CSG Defence considers stock market debut
According to Bloomberg, Czech defense group CSG Defence is considering its first share issue on the Amsterdam stock exchange in January 2026. Experts estimate that the group could raise up to EUR 3 billion in financing through the share issue. The company is a rapidly growing manufacturer of, among other things, large-caliber ammunition, Tatra trucks, armored vehicles, small arms, and reconnaissance systems. Since the outbreak of the war in Ukraine in 2022 and the emergence of rapidly growing demand for its products, it has been experiencing a period of unprecedented growth.
The share issue by CSG Defence would mark the Czech group’s entry into a new stage of development. Obtaining additional stock market financing would increase funds for the expansion of production infrastructure, investments in research and development, and further acquisitions (CSG has made numerous acquisitions, e.g., in the United States). The group could also strengthen its position in Central and Eastern European countries.
Romania acquires used F-16s
The Romanian government has acquired 18 used F-16 tactical aircraft from the Netherlands. The contract cost a symbolic €1 excluding VAT. The acquired aircraft will operate within the European F-16 Training Center at the 86th Air Base in Fetești and will be used to train Romanian and Ukrainian pilots. The same type of aircraft, for a similar purpose, was previously acquired from Portugal, among others.
The extension of the European F-16 Training Center in Romania and the acquisition of new aircraft for it is an example of a successful partnership between a country on the eastern flank and a Western European partner. Bucharest is strengthening its role as a country supporting Ukraine’s essential defense capabilities (the Ukrainian Armed Forces are ultimately expected to operate at least 87 F-16 aircraft), while The Hague is accelerating the modernization of its own tactical aviation—the transferred aircraft will be replaced with new F-35s.
Rheinmetall plans to send more infantry fighting vehicles to Ukraine
Rheinmetall CEO Armin Papperger announced the production of five more KF41 Lynx infantry fighting vehicles for Ukraine. One vehicle of this type has already been handed over to the Ukrainian Armed Forces for testing, and the German group is actively seeking a large contract with Kyiv. According to Papperger’s estimates, potential deliveries, combined with the launch of production in Ukraine, should result in a contract for approximately 200-300 vehicles.
The German group is actively seeking to expand its business in the region beyond the co-production and sale of large-caliber ammunition. Recently, there has been a noticeable increase in activities aimed at promoting armored vehicles, including tanks and infantry fighting vehicles, in the eastern flank region. Rheinmetall is also counting on the Ukrainian Armed Forces to purchase Fuchs wheeled armored personnel carriers.
Sweden and Ukraine plan to establish a military technology center
The ministers of Sweden and Ukraine have signed a letter of intent on cooperation in the development of military technologies. The main goal of this project is to establish a military technology center located in Ukraine. Swedish specialists are expected to participate directly and work in Ukraine. Experience of operating in wartime conditions is a key factor that can influence the development of modern military solutions.
The new Swedish-Ukrainian venture is a continuation of the good cooperation between the Swedish defense industry and Ukraine. For example, in October, another letter of intent was signed and expert groups were established in the field of supplies and possible cooperation in the production of a new generation of Gripen E fighters in the next few years. The establishment of a military technology center will enable Swedish defense companies to participate in the development of military solutions with the possibility of conducting tests directly in a war zone. This strategy will certainly pay off when concluding new export contracts by both Sweden and Ukraine.
Expansion of threat monitoring infrastructure on the Norwegian-Russian border
Norway has received €16.4 million in funding under the EU’s Border Management and Visa Instrument (BMVI) program for 2021-2027. The program has been entrusted to the Norwegian Police and will be implemented on the land section of the border with Russia. Monitoring and security infrastructure to prevent unauthorized entry of people and aircraft will be built on selected sections of the approximately 200 km stretch. There are plans to build masts with sensors for detection and observation, as well as to use drones on selected sections of the border.
The BMVI program is a well-known EU mechanism aimed at strengthening borders, especially the European Union’s border infrastructure. The reason for the expansion of the infrastructure used to monitor the border with Russia is the increase in identified hybrid threats. The recommendations to strengthen the barrier against actions below the threshold of war contained in the reports of the Norwegian special services, i.e., the Norwegian Foreign Intelligence Service (NIS)in the document “NIS Focus 2025” and the Norwegian Police Security Service in the threat report “PST National Threat Assessment 2025.”
Medvedev’s meeting on security in northwestern Russia
A working meeting chaired by Dmitry Medvedev was held in St. Petersburg, devoted to regional security issues in the northwestern regions of the Russian Federation. The state and protection of critical infrastructure, as well as the development of regional territorial defense systems, were discussed. The meeting brought together representatives of security structures, defense ministries, and regional administrations. Discussions focused on increasing the readiness of local forces in the event of military threats and sabotage. Attention was also paid to technological support for energy and transport infrastructure, which is crucial for the Northwestern Federal District.
The emphasis on territorial defense and strategic facilities indicates Russia’s growing preparations for potential military action in the northwestern theater and on the border with NATO.
Rotations and reorganization of Russian forces on the Ukrainian front
Numerous rotations of assault units belonging to Russian forces participating in the so-called Special Military Operation were reported in the Kupiansk, Kharkiv, and Donetsk directions. New volunteer groups have been brought into the fight, including formations from Chechnya, as reported by Ramzan Kadyrov. At the same time, local subunits have been reorganized in several areas of the front, especially in the vicinity of Pokrovsk (Krasnoarmeysk). The changes include merging smaller groups into larger sapper and engineering teams and units specializing in countering drones, which increases Russia’s engineering and counter-diversionary capabilities in the area of operations.
The intensification of rotation and reorganization indicates an attempt to maintain the pace of the offensive while replenishing high losses and adapting the structure of military units to the needs of combating Ukrainian drones and landmines.
News from the Eastern Flank Institute (IWF):
- Last week, we published an English-language version of the analysis by IWF expert Col. (ret.) Łukasz Paczesny on the Estonian Defense League and conclusions for Poland from the analysis of the case study of the local territorial defense system. Material on the conclusions (in Polish) of the above-mentioned analysis was published by Radio WNET.
- The Sobieski Institute published a summary of the 2nd Ideas for Poland Forum, during which our new report on the involvement of the private sector in the development of the state security system was premiered.
- IWF expert Lt. Col. (res.) Maciej Korowaj appeared on the program “Didaskalia” hosted by Patrycjusz Wyżga. The conversation focused on changes in the Chinese armed forces, including the practical implementation of lessons learned from Russia’s aggression against Ukraine. We encourage you to listen to the entire interview (in Polish).
