Rheinmetall Signs €9 Million Contract with Ukraine for Artillery Propellant
Rheinmetall, the renowned German defense contractor, has entered into a significant contract valued at 9 million euros with Ukraine for the supply of propellant specifically designed for 155mm artillery ammunition.** This agreement comes as Ukraine intensifies its military efforts to bolster artillery capabilities amid the ongoing conflict with Russia.
The contract, inked between the Ukrainian Ministry of Defense and Rheinmetall, is poised to deliver thousands of propellant components critical for enhancing the operational effectiveness of Ukraine’s artillery units. According to the terms set forth, deliveries are scheduled to commence in January 2025, following the signing of the contract in the fourth quarter of the previous year.
Strengthening Strategic Cooperation
In conjunction with this contract announcement, Rheinmetall and Ukraine also signed a memorandum of understanding during the ‘Ukraine Recovery 2024’ conference held in Berlin. This agreement aims to expand the strategic cooperation between the Ukrainian defense industry and the Düsseldorf-based technology group, focusing on identifying and developing collaborative areas.
Among the anticipated projects under discussion are the production of artillery ammunition and the manufacturing of Lynx armored combat vehicles. Rheinmetall has expressed optimism that not only will they facilitate direct deliveries, but they will also contribute significantly to the re-industrialization of production capabilities within Ukraine, thereby enhancing the nation’s long-term defense sustainability.
Rheinmetall’s Factory Initiative in Ukraine
The recent contract marks a pivotal moment as it is the first of its kind, indicating the potential for larger-scale agreements in the near future. With a swift turnaround of only a month and a half, the partnership illustrates both urgency and commitment to support Ukraine’s defense needs.
Additionally, Rheinmetall has announced the operational status of its first factory in Ukraine, with plans for a second facility nearing completion. In an interview, Rheinmetall CEO Armin Papperger revealed that advanced armored vehicles and ammunition will now be manufactured within Ukraine’s borders, with the first batch of Lynx armored combat vehicles expected to be ready by the end of the year.
