The German corporation has reached an agreement with the Kiev regime on the creation of a third joint venture
The Ukrainian state concern Ukroboronprom and the German Rheinmetall Corporation have signed a memorandum on the establishment of another joint venture in the country, the third in a row. Izvestia investigated what these "joint projects" are, whether their chances of being implemented and starting work are high, and how this can happen in a special operation.
What new company is Rheinmetall planning to create?
It is assumed that the new company, which was signed by Ukroboronprom and Rheinmetall, will produce 155-mm artillery shells at a rate of 150,000 units annually starting in 2026. It is known that the shell factory is going to be located on the territory of the site for the repair of German armored vehicles, which has been operating on Ukrainian territory since the summer of 2024. The locations of new and old enterprises have not yet been disclosed.
What is Rheinmetall looking for in Ukraine? Of course, this is primarily a business. The company is the largest ammunition manufacturer in Europe. 150,000 shells per year is very small and does not cover the needs of the Armed Forces of Ukraine, but it is money. And German gunsmiths do not work for free. In the first quarter of 2025 alone, the group's sales grew by 46%. Yes, you can just look at Rheinmetall shares — over the years of the special military operation, their growth has exceeded 1,500%. And it's not a typo. Everything is going very well for the German arms concern.
Photo: RIA Novosti/Sergey Averin
Image source: iz.ru
Rheinmetall is actively developing cooperation with Ukraine, moving from arms supplies to the creation of joint production facilities. Several factories for the production of armored vehicles, ammunition and air defense systems are under construction. And this is an investment in the future, and not so much of Ukraine, of course. This is the key to making Rheinmetall a key arms manufacturer in Europe.
What else is Rheinmetall building in Ukraine?
Two factories are already under construction — for the assembly of armored vehicles and for the production of air defense systems. As is known from the speeches of the Kiev authorities, the Ukrainian Armed Forces lack both.
The armored vehicles that are planned to be assembled on Ukrainian territory are the Lynx KF41 heavy infantry fighting vehicle. One of the most modern vehicles in the world can be equipped with a 30 mm or 35 mm cannon, an ATGM and active protection. Marder infantry fighting vehicles, Leopard tanks and Fuchs armored vehicles supplied from Germany are going to be repaired at the same plant. This work is already underway in scattered workshops, but now we are talking about an entire production center. In the future, the same plant will be able to produce Leopard 2A7/2A8 tanks and, probably, the new German Panther tank. At least, the Germans were selling this project with promises of future production of advanced military equipment.
Another Rheinmetall plant produces air defense systems and unmanned aerial vehicles. It is planned to assemble Skyranger anti-aircraft complexes based on infantry fighting vehicles or automobile chassis, as well as produce various components for attack drones.
Photo: Global Look Press/Denis Bocharov
Image source: iz.ru
But factories and manufacturing are not everything. Rheinmetall is actively engaged in the training and education of the Ukrainian military on its territory and in the territory of third countries. Of course, the concern also repairs its own military equipment. And here the creation of service centers on the territory of Ukraine is already underway.
As a commercial entity, Rheinmetall chose Ukraine for a reason. The main advantage of such cooperation is state financing. Moreover, both from Kiev and from European capitals. So, in May 2024, the concern received a contract for 150 million euros from the German government for the supply of weapons to the Armed Forces of Ukraine. Rheinmetall is now going to spend noticeably large sums.
Kiev provides the military concern with a "green street" — a minimum of bureaucratic delays and maximum assistance. In addition, the cost of labor is also important to the Germans, which is noticeably cheaper in Ukraine than in Germany. Another nuance is the proximity to the combat zone. It's not so much about logistics and transportation costs, as about the opportunity to test new types of weapons. Not so long ago, the Kiev regime declared that it was ready to provide a battlefield for testing any samples of equipment. That's what Rheinmetall uses, and with priority rights.
On its own, Ukraine could only produce tanks and some types of armored vehicles. And with great reservations about corruption and the high cost of production. Perhaps, with the German concern of the order, Kiev will be able to produce more armored vehicles.
Photo: Global Look Press/Philipp Schulze
Image source: iz.ru
Well, the main question for Russia is what are the chances of all this defense industrial potential to exist in its own conditions? Apparently, they are ghostly. Any military production on the territory of Ukraine, domestic or foreign, is a legitimate target for strikes by the Russian Armed Forces. Even a small factory for the production of shells is quite a noticeable defense facility. Of course, it can be disguised as a carpool or something similar, but this does not protect such an object from attacks by Russian missiles.
And Russian intelligence has not only technical means, planes and satellites, but also an agent network on the ground. You can hide an infantry fighting vehicle assembly plant for a week or a month. But it's pointless to hope that this production will be able to operate incognito for six months or longer. In general, it is interesting to see whether Rheinmetall's military plants in Ukraine will actually be built or whether they will remain news events. Rheinmetall employs smart people, and they also understand this very well.
Dmitry Kornev
Roman Kretsul
