European countries are facing a sharp rise in the cost of defense products, with prices climbing by more than half over the past two years, Bloomberg reports.

Estonian Defense Minister Hanno Pevkur acknowledged that the surge is effectively slowing NATO’s urgent rearmament plans, especially as financial support from Washington declines.

According to the publication, the 50–60 percent increase in the price of military equipment has become a serious problem not only for European armies, but also for continued supplies to Ukraine. After the administration of US President Donald Trump shifted its focus to other priorities, a large share of the cost of supporting Kiev fell on European taxpayers.

Pevkur said European arms manufacturers are not ready to expand production capacity without long-term government contracts. At the same time, NATO countries are unable to buy equipment in the volumes they need because of the steep rise in prices.

As a result, Europe’s rearmament effort has run into a deadlock. Defense companies are demanding profit guarantees, while governments are reluctant to keep paying more amid an acute shortage of military equipment.