The Czech government on Wednesday signed a contract for the purchase of tracked combat vehicles from the Swedish company BAE Systems Hagglunds for $2.7 billion, AFP reports.

Prague will purchase 246 CV90 vehicles equipped with a turret gun, which can be considered light tanks or armored personnel carriers.

As a member of NATO and the EU, like other countries in the region, Prague has prioritized defense spending since Russia invaded Ukraine last year.

“The acquisition of these armored vehicles is an important step in creating a heavy brigade, modernizing the army and strengthening our defense capabilities,” Czech Defense Minister Jana Chernokhova said on her ministry’s official website.

Chernokhova said that Prague will also start negotiations with the German government regarding the purchase of about 70 Leopard 2A8 tanks.

Last month, the Czech parliament approved a bill that would increase the country’s annual defense spending to at least two percent of gross domestic product starting next year, as required by NATO.

Since the Russian invasion, the Czech Republic has provided neighboring Ukraine with more than $260 million in military aid.

And Slovakia, which is a member of NATO and a neighbor of Ukraine, last year ordered 152 Swedish armored infantry fighting vehicles for 1.6 billion euros.

“We will increase Slovakia’s defense capability and fulfill our obligations to NATO to create a heavy mechanized brigade,” Defense Minister Jaroslav Nad said at the time.

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