Ukrainian Defense Industry JSC and Rheinmetall set up a joint venture

Publication date: 24.10.2023

Joint Stock Company "Ukrainian Defense Industry" and one of the world's leading defense companies, German concern Rheinmetall AG, have established a joint venture. German-Ukrainian LLC "RHEINMETALL UDI" (RHEINMETALL UKRAINIAN DEFENSE INDUSTRY LLC) was registered on October 18, 2023. This was announced by the Prime Minister of Ukraine Denys Shmyhal during the German-Ukrainian business forum in Berlin in the presence of the Federal Chancellor of Germany Olaf Scholz.

Notably, this is the first joint venture established with foreign partners with the participation of Ukrainian Defense Industry JSC.

The basis of the cooperation is the maintenance and repair of armored vehicles transferred to Ukraine by partners. This cooperation also envisages joint production of Rheinmetall products in Ukraine and the development of advanced weapons and military equipment on the basis of the newly created enterprise with the participation of Ukrainian and German specialists.

"Ukroboronprom has been working for a long time to establish a joint venture with Rheinmetall. This opens up new opportunities for the state defense industry and establishes us as a reliable player in the international arena. I am sincerely grateful to our partners for their cooperation and trust, – said Ukroboronprom Director General Herman Smetanin during his visit to Germany. – This is   a significant work done by the Office of the President of Ukraine, the Cabinet of Ministers of Ukraine, the Ministry of Foreign Affairs and the Minister of Strategic Industries Oleksandr Kamyshin».

Armin Papperger, CEO Rheinmetall: “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 Ukrainian Defense Industry as a very capable and trustworthy partner at our side."

The establishment of joint ventures with foreign partners is one of the key opportunities that the reform of the state defense industry has opened up for the transformed Ukroboronprom. On June 28, 2023, the State Concern was transformed into the Ukrainian Defense Industry Joint Stock Company, potentially becoming a more familiar and transparent partner for international companies. Currently, the completion of Ukroboronprom's reform is the focus of the state defense industry team.