The German defense concern Rheinmetall and Ukroboronprom have formed a joint venture to repair Western equipment.
Denys Shmyhal, Prime Minister of Ukraine, announced this on his official Telegram page.
The joint venture is primarily aimed at repairing and maintaining combat equipment provided by Germany and other Western partners.
In addition, in the future, there will be an opportunity to localize the production of some military equipment at the facilities of this enterprise.
Rheinmetall – Ukrainian Defense Industry LLC was registered on October 18, 2023. The Prime Minister announced this during the German-Ukrainian business forum in Berlin.
“The creation of the joint venture is, without exaggeration, a landmark event that brings cooperation between our countries to a qualitatively new level and will allow us to build the arsenal of the free world together,” Denys Shmyhal shared.
The new joint venture can significantly increase the volume of military equipment repair and provide additional jobs for the local population.
In addition, two more companies will be established to specialize exclusively in arms production.
The first reports of the joint venture appeared in the spring of 2023. Rheinmetall CEO Armin Papperger made the announcement in an interview with the German Handelsblatt.
According to him, the cooperation would initially cover the maintenance and repair of armored vehicles in Ukraine, while the production of tanks would be prepared in parallel.
On September 28, 2023, the German Federal Cartel Office (Bundeskartellamt) gave the go-ahead to Rheinmetall to establish a joint defense venture.
“The joint venture is to be based in Kyiv and engage in service and maintenance as well as the assembly, production, and development of military vehicles,” the German Federal Cartel Office said in its press release.
The Bundeskartellamt added that the company will initially operate exclusively in Ukraine.