Rheinmetall, Ukroboronprom to Set up Armored Vehicles Joint Venture in Ukraine

Rheinmetall and Ukraine’s Ukroboronprom have entered a strategic cooperation agreement under which a joint venture will be set up by July this year to repair armored vehciles and tanks supplied by Germany to Ukraine.
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, a Rheinmetall release said.

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.