Turkish-Romanian Defense Deal a Model for Europe

A defense deal signed by Turkish and Romanian arms companies shows a route to enhanced industrial cooperation across Europe.

Source: Otokar

Otokar, a Sakarya-based subsidiary of Turkey’s Koc group, announced in April that it had sealed a near-$1bn agreement with Romania’s Automecanica to build more than 1,000 Cobra II 4×4 armored vehicles and undertake engineering, marketing, and after-sales support. Each side will own 50% of the joint venture, and they both see it as a springboard to further cooperation.  

The agreement, which builds on greater energy and defense cooperation between the two nations since Russia’s full-scale invasion of Ukraine in 2022, is an important landmark for the defense industrial sectors of Romania and Turkey, and for the rest of Europe. 

The deal provides an opportunity for Turkish defense industry leaders to show they can compete effectively in the highly competitive European market at a time when the continent’s defense sector needs to grow at pace in the face of Russian aggression and doubts over continued US military presence. 

Turkish manufacturers already have a strong reputation for the high quality of their weapons systems and equipment, and, having enjoyed a record year in 2024, are aiming to surpass that by further expanding into European markets. Through large-scale deals, the industry aims to establish itself as a major long-term player on the continent and in the Balkan market in particular.

Establishing a major long-term presence in the European defense industrial sector would pay geopolitical as well as economic dividends for Ankara. Given the likely and impending drawdown of US forces and weapons systems in Europe, the integration of Turkey in European defenses, especially in and around the Black Sea, is a highly consequential strategic issue.  

And the closer integration of Turkey into Europe through defense can be accomplished through mechanisms newly established by the European Union, including the bloc’s $169bn SAFE loan program to finance investment in defense and arms manufacturing. Turkey is anxious that its companies will be excluded and is seeking agreement to ensure deeper cooperation.

A closer relationship could present a golden opportunity for EU members to access some of the quality products of Turkey’s defense industry, including the TB2 drones that were decisive in Nagorno-Karabakh, an impressive range of missiles and counter-drone systems, and unmanned land warfare vehicles. Indeed, as a Carnegie assessment noted: “Turkish defense companies produce a host of NATO-standard equipment — from artillery and shells to infantry fighting vehicles, armed drones, and navy ships.”

Deals with the Turkish defense industry, using the EU loan package or other financial instruments, will go a long way to bringing Turkey, a NATO member since 1952, into Europe’s defense programs and strategy. Most observers agree that such a move would be strategically vital to Europe and, in this context, interoperability with Romania and other EU countries is a critical factor.

The deal, and the precedent it sets, also offers Romania a range of benefits. Collaboration with Turkey, a major power in the Black Sea, will improve interoperability and help strengthen NATO’s capabilities in the region, further incentivizing Ankara’s participation should a regional crisis break out.  

At the same time, the deal enhances Romania’s defense industry capabilities, ensuring long-term maintenance support for the Cobra II and fostering local technological development. 

These are all vitally necessary for the recovery of Romania’s defense-industrial sector. The Cobra vehicle is a proven, multi-role tactical armored vehicle well suited to the needs of Romania, which faces potential threats from Russian invasion, especially if Moscow wins in Ukraine, as well as civil strife in Moldova and within Romania, where the Kremlin has invested heavily to interfere in domestic politics. 

The Cobra deal also represents a possible breakthrough in Romania’s quest to upgrade its defense industry, which has suffered from more than 30 years of underinvestment, lack of competitiveness, obsolete technology, and shortages of skilled personnel and raw materials. It faces many challenges in providing for Romania’s own defense, let alone integrating with European defense industrial networks, and Bucharest has embarked on a comprehensive plan to attract foreign capital and companies to its shores.

The agreement, therefore, signifies more than just a bilateral contract with a reputed partner to manufacture a weapons system. If the deal succeeds, Romania will get more than a very usable weapon, Turkey will be incentivized to invest further in Romania, and other countries will see that they can too.  

Romania will also learn from Otokar’s management, distribution, production, maintenance, sales, and supply techniques, which it can then apply to other parts of its domestic defense sector and use as an inducement for further investment.  

By generating momentum and resources, this could create a virtuous circle to help Romania overcome the shortcomings of its defense-industrial sector and improve its integration with EU networks.  

The deal is also a chance to spur a major enhancement of European defense in the critical Balkan/Black Sea theater. In the present environment, and given the factors affecting the European defense industrial sector as a whole, it should be the first of many positive deals across the continent.

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By Stephen J. Blank. Dr. Stephen J. Blank is a Non-Resident Senior Fellow in the Foreign Policy Research Institute’s Eurasia Program. Article first time published on CEPA web page. Prepared for publication by volunteers from the Res Publica - The Center for Civil Resistance.