The Norwegian defence ministry announced on Friday that it plans to purchase two additional submarines and some long-range cannons from Germany. This will be at a higher price than previously due to the high demand for military gear.

The order for the submarines comes after the four submarines that the Nordic country purchased from Germany's Thyssenkrupp back in 2021, which cost 45 billion crowns (4.5 billion dollars) at the time. The new submarines are also being ordered through Thyssenkrupp Marine, a newly spun-off division of Thyssenkrupp.

At 1240 GMT, shares of TKMS, the company that confirmed the transaction, were 1% higher.

This new order is expected to cost 46 billion crowns. The total cost for the submarines will be close to 100 billion, due in part to the inflation of raw materials costs and defence equipment.

NATO countries are increasing their defence spending under pressure from President Donald Trump of the United States and because they're worried about Russia's invasion in Ukraine.

Norway is NATO’s monitor of the vast area of 2 million square kilometers (772,000 square mile) in the North Atlantic, which is used by the Russian Northern Fleet's nuclear subs.

The Russian submarines, which are based on the Kola peninsula, an area of the Arctic bordering Norway, will be the focus of the key mission.

Tore Sandvik, the Minister of Defence, said that he had observed an increase in Russian activity in the North Atlantic Sea and Barents Sea.

According to the Ministry, the first six submarines are expected to arrive in 2029.

Norway also plans to purchase long-range missiles for its army, capable of reaching targets up to 500 km (310 mi) away. The cost is 19 billion crowns.

The need for Western countries to improve their capability has been highlighted by the war in Ukraine and the prevalence of missile attacks.

Sandvik stated in a press release that it was important to have a defense capability capable of deterring a potential enemy from harming us.

(source: Reuters)