The German defense conglomerate Rheinmetall and Ukraine’s state concern Ukrainian Defense Industry (UkrOboronProm) have formed a joint venture, Ukrainian PM Denys Schmyhal announced.
PM Shmyhal made the announcement during the German-Ukrainian Business Forum in Berlin on 24 October. He said Rheinmetall – Ukrainian Defense Industry LLC was registered on 18 October.
The Prime Minister says the joint venture will provide maintenance and repair of equipment supplied by allies to Ukraine.
“This enterprise will also localize the production of leading models of Rheinmetall AG equipment,” Scmyhal added.
The Ukrainian Prime Minister called the venture “a landmark event” taking cooperation between the countries “to a qualitatively new level.” He said it would help jointly build the “arsenal of the free world.”
Ukroboronprom and Rheinmetall signed a strategic partnership agreement back in May to establish a joint venture. Initially, the joint venture was scheduled to begin operations in mid-July 2023.
The forum also saw Ukrainian and German companies reach agreements on investment projects. These include a memorandum of cooperation between Ukraine’s Ukrhydroenergo and Andritz Hydro GmbH on green hydrogen production projects in Ukraine.
In addition, the Government of Germany provided an investment insurance guarantee to the German company Fixit to complete its second production facility in Ukraine, Schmyhal says.
Ukrainian Prime Minister Shmyhal said private business is the main engine of Ukraine’s recovery and growth. He expressed gratitude to the German government and Chancellor Olaf Scholz personally for the insurance guarantee program to incentivize companies to invest in Ukraine now rather than wait for the war’s end.
Shmyhal outlined Ukraine’s efforts to attract investment through mechanisms like deregulation, digitalization, industrial parks, the UkraineInvest office, and improved logistics at the western border. He called for more German business investment in various Ukrainian projects.
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