The order is for Estonia, Latvia, Lithuania, the Czech Republic and Poland, and is first under the framework agreement signed by the EDA and Saab in 2014, allowing for the coordinated purchase of Carl-Gustaf ammunition by participating countries.

"This unique and very flexible way of providing Carl-Gustaf ammunition ensures that our customers can maintain highly capable and deployment-ready defense forces," said Gorgen Johansson, head of Saab's Dynamics business area. "The proven and reliable Carl-Gustaf system offers soldiers unique flexibility and capability through its high accuracy, light weight and built-in compatibility with future innovations."

The Carl-Gustaf is an 84mm recoilless rifle that can be operated by a two-man crew or a single soldier. It is a multi-purpose weapon used against armored targets, installations and enemy troops.

Saab and the EDA signed a framework agreement last year to support potential orders and deliveries of Carl-Gustaf ammunition to Estonia, Latvia, Lithuania, the Czech Republic and Poland. The agreement is in effect for five years.

The new contract given Saab is worth more than $15.3 million, Saab said. Delivery of the ammunition will take place next year.

"By pooling resources through this multinational agreement, participating member states ensure they get the capabilities they need in the most efficient way possible," said Peter Round, EDA Capability, Armament and Technology director. "It also allows participating countries to purchase ammunition according to their national needs despite having different budget cycles."