May 15, 2023
Initial focus on military vehicles
Rheinmetall and the Ukraine’s state-owned Ukroboronprom have entered a strategic cooperation agreement. Cooperation between the two organizations is intended to strengthen Ukraine’s defence industry and ultimately its national security through the step-by-step creation of joint defence technology capabilities that will be domiciled in Ukraine.
Under this agreement, Ukraine will benefit from a comprehensive transfer of technology, the creation of additional defence technology capacities in Ukraine, additional local valued added, and the short-term delivery of military equipment from Germany.
A cooperation agreement to this effect has now been signed by both parties. To begin with – subject to official approval – a joint venture will be set up to serve as a bridge between Rheinmetall and Ukraine’s existing state-owned defence sector. Closing is scheduled for the end of June 2023, and the joint venture is expected to be operational from mid-July 2023.
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In the words of Rheinmetall chief executive Armin Papperger, “Meeting Ukraine’s urgent needs in its fight for freedom and democracy as quickly as possible is a matter of central importance to us at Rheinmetall. Thanks to its expertise and capabilities, Rheinmetall has what it takes to be a valuable and powerful partner to Ukraine both in the short term and in the long run. We are pleased to have Ukroboronprom, led by Yuriy Husyev, as a very capable and trustworthy partner at our side."
Armin Papperger with a view to Ukraine's defensive struggle: “We are proud that Germany is doing everything it can to help the people of Ukraine – be it in the form of humanitarian aid, financial support or military equipment. Here, Rheinmetall works closely with the German government, assuring that help reaches Ukraine as quickly and efficiently as possible. In times of change, we take responsibility by doing our part to secure peace in Europe.”
Yuriy Husyev, General Director Ukroboronprom: “I am honoured to set up the joint venture between one of the world’s leading manufacturers in the defence industry, Rheinmetall, and leading full scale operating Ukrainian defence producer, which increased the production of military equipment and armored vehicles despite of numerous Russian missiles attacks, the State Concern Ukroboronprom. Already working 24/7 for the victory, Ukroboronprom can do even more while having such a partner as Rheinmetall. We are thankful to Rheinmetall for their willingness to help us defeat Russia. We will do all our best to make this cooperation useful to defence forces of Ukraine as soon as possible.”
As a first step, the maintenance and repair of vehicles transferred to Ukraine under the German government’s multilateral “Ringtausch” equipment exchange projects as well as those directly supplied to Ukraine will form the foundation for cooperation.
In later phases, based on a comprehensive transfer of technology, the cooperation partners intend to jointly produce selected Rheinmetall products in Ukraine. Looking ahead, cooperation between Rheinmetall and Ukroboronprom could also involve the joint development of military systems by teams of Ukrainian and German specialists, including for subsequent export from Ukraine.