Rheinmetall announced the creation of an enterprise for the production of tanks in Ukraine

The German concern Rheinmetall and Ukroboronprom have created a joint venture for the production and repair of tanks in Ukraine, transmits Reuters, citing a company statement.

The signing of an agreement on the creation of a joint venture is scheduled for the end of June, and the plant should start working from mid-July, the report says. The new enterprise will first deal with the maintenance and repair of vehicles transferred to Ukraine by Germany. After that, Rheinmetall and Ukroboronprom are expected to start producing some products of the German concern. This could lead to the joint development of military systems for export from Ukraine, the statement said.

Rheinmetall chief executive Armin Papperger previously told Handelsblatt that the company will provide management and own 51% of the shares. According to the newspaper, in the coming days, Rheinmetall expects to sign contracts for two more joint ventures for the supply of ammunition and air defense. According to Reuters, Rheinmetall produces ammunition and other military equipment, and also produces Leopard tanks together with Krauss-Maffei Wegmann.

In March, Papperger said his company is negotiating with Kiev on the creation in Ukraine of a plant for the production of tanks, which will be able to produce up to 400 Panthers per year. He estimated the launch of such an enterprise at 200 million euros. According to the head of the concern, Ukraine needs 600-800 tanks, and it is possible to achieve the supply of such a quantity if they start production as soon as possible. Deputy Chairman of the Security Council of the Russian Federation Dmitry Medvedev said that in the event of the construction of a tank plant in Ukraine by a German concern, Russia will respond with “a salute from Caliber” and other devices.