Argentina plans to purchase new submarines for US$2.3 billion, seeking external financing to revive its underwater combat capabilities

The Argentine Navy submarine "San Juan" sank for some reason in 2017, and its combat capabilities, including surface ships and submarines, need to be updated.

The Argentine government recently sent the 2027 national budget draft to Congress. The foreign military news website "Navy News" reported that this budget is included in the plan to acquire naval submarines and frigates, authorizing the government to obtain up to US$2.3 billion for the purchase of three new submarines. Yuan (approximately NT$72.96 billion) in financing, and another US$1.2 billion (approximately NT$38.06 billion) in funding for two multi-mission frigates. The total financing scale of the two projects is up to US$3.5 billion (approximately NT$111.02 billion).

However, the report stated that the inclusion of relevant projects in the draft budget does not mean that a formal procurement decision has been completed. According to budget documents, whether the two projects can be advanced still depends on whether the Argentine government can obtain qualified external financing.

Since the sinking of the TR-1700-class submarine "San Juan" in Argentina in 2017, the maritime operation capabilities of Argentina's submarine force have been significantly affected. Currently, the Navy still maintains the Type 209 "Salta" and the TR-1700-class "Santa Cruz", but both ships are currently unable to provide complete normal maritime mission capabilities, and some submarine and anti-submarine training must still be maintained through cooperation with foreign navies.

To this end, France's Naval Group and Germany's Thyssenkrupp Marine Systems (TKMS) are paying attention to the Argentine Navy's demand for new submarines. If Argentina adopts France's "Squid-class" submarines in the future, Brazil may also play a role in industrial cooperation. Brazil is currently building the "Riachuelo-class" submarine based on the "Erotico-class" in Itaguai through the PROSUB project, and has established relevant shipbuilding infrastructure and professional manpower.

For surface ships, reports state that the Argentine Navy is evaluating a variety of European designs, including the Italian FREMM frigate, and related derivatives of the "Tamandarei-class" built in Brazil based on the German MEKO A-100. Argentina's main surface ships currently in service include four MEKO 360 "Admiral Brown-class" destroyers and six MEKO 140 "Espola-class" frigates, most of which have been in service for many years.

Argentina's defense budget for 2027 is approximately US$5.3 billion (approximately NT$168.12 billion), a nominal increase of approximately 20% compared to 2026, but still lower than the inflation rate during the same period. Therefore, external financing conditions will still be an important factor in whether the above-mentioned ship financing plan can be further implemented.