(Bloomberg) -- Finland selected Rafael Advanced Defense Systems Ltd to provide an air-defense system that will plug a hole in the weaponry of NATO’s newest member at the cost of €316 million ($346 million).

A neighbor to Russia with a 1,300-kilometer (800-mile) border, the Nordic country is currently missing high-altitude interception capability after decommissioning the BUK system acquired decades ago from the Soviet Union.

Finland announced the purchase a day after completing its accession to the North Atlantic Treaty Organization, and just a day before its government is due to resign following elections. Joining the military alliance followed a U-turn in public opinion after Russia’s decision to launch a full-scale invasion of Ukraine about a year ago. That war also increased the urgency of the procurement.

Finland can already defend itself against missiles with a relatively low-altitude NASAMS system as well as projectiles launched by its Hornet F/A-18 fighter jets. Ordering the ground-based David’s Sling system will “significantly” extend the operational range of its air-defense capabilities, according to a statement from Finland’s Ministry of Defense on Wednesday. 

The minimum flight altitude requirement of the system was set at 15,000 meters (49,000 feet) in the request for quotation.

“This acquisition will create a new capability for the Finnish Defense Forces to intercept targets at high altitude, Defense Minister Antti Kaikkonen said.

The deal comes on top of other major defense expenditure, including a €10 billion procurement in late 2021 of F-35A fighter jets from Lockheed Martin Corp. to replace the aging Hornets. It’s also building new vessels for the navy suitable for patrolling the shallow archipelago of its coasts.

The purchase consists of a main contract worth about €213 million as well as the immediate exercise of options worth €103 million, and additionally further options worth €216 million, the ministry said. The transaction will require a sales release by the US government.

The project started in late 2020 when requests for tenders were sent to five companies, including in Germany, Norway and the UK. In the final phase, the choice was between Israel Aerospace Industries Ltd and Rafael. IAI offered its BARAK-MX system with LRAD ER missile and ELTA radar, while Rafael had proposed David’s Sling system with STUNNER missile and ELTA radar.

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