Ukraine’s Ukroboronprom and Germany’s Rheinmetall signs strategic cooperation agreement

German defense giant company Rheinmetall and Ukraine’s state-owned defense corporation, Ukroboronprom, have inked a strategic cooperation agreement aimed at bolstering Ukraine’s defense industry and, by extension, its national security. The partnership centers around the gradual establishment of joint defense technology capabilities within Ukraine.

This landmark agreement promises Ukraine a wealth of benefits, including a significant technology transfer, the generation of additional defense technology capacities on Ukrainian soil, an increase in local value-added, and the speedy delivery of military hardware from Germany.

The two entities have now formally agreed to this cooperation. Initially, pending official approval, a joint venture will be established to facilitate the collaboration between Rheinmetall and Ukraine’s state-run defense sector. The deal is set to close at the end of June 2023, with the joint venture predicted to be up and running by mid-July 2023.

In a statement, Rheinmetall CEO Armin Papperger emphasized the importance of swiftly meeting Ukraine’s urgent needs in its struggle for freedom and democracy. Papperger lauded Ukroboronprom, headed by Yuriy Husyev, as a reliable and capable partner, while expressing pride in Germany’s comprehensive support for Ukraine.

Yuriy Husyev, General Director of Ukroboronprom, expressed his gratitude to Rheinmetall for their support in the fight against Russia and voiced his determination to make the collaboration beneficial for Ukraine’s defense forces as soon as possible.

The partnership will initially focus on the maintenance and repair of vehicles transferred to Ukraine under the German government’s “Ringtausch” equipment exchange projects, as well as those directly supplied to Ukraine.

Future phases will see the joint production of selected Rheinmetall products in Ukraine, facilitated by a broad technology transfer. There’s also potential for further cooperation in the form of joint development of military systems by Ukrainian and German teams, possibly leading to subsequent exports from Ukraine.

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