Federal Cartel Office: Rheinmetall and Ukrainian Defence Industry are OK

The strategic cooperation launched in May 2023 between Rheinmetall and the Ukrainian State Concern Ukrainian Defence Industry (UDI, formerly Ukroboronprom) in the defense sector has taken another intermediate step. On September 28, the Federal Cartel Office approved the establishment of a joint venture between Rheinmetall Landsysteme GmbH and the UDI from Kyiv in Ukraine. The further necessary approvals have already been applied for and are expected shortly.

"The joint venture is to be based in Kyiv and will take on activities in the areas of service and maintenance services, assembly, production, and development of military vehicles," the Federal Cartel Office said in its press release on September 28, 2023. "It will initially operate exclusively on the territory of Ukraine. In Germany, there are no competitive overlaps, nor are there any indications of competitive concerns. The project got clearance from the Federal Cartel Office within a month."

The cooperation launched in May 2023 between Rheinmetall and the Ukrainian defense industry aims to strengthen Ukraine's defense industry base and ultimately the country's national security by gradually building joint capabilities in defense technology in Ukraine.

In the cooperation, Ukraine benefits from a comprehensive technology transfer, building up its defense capacities in-country, additional local value creation, and the short-term supply of military equipment from Germany.

In an initial joint step with UDI, activities in the repair of military vehicles provided to Ukraine through barter projects of the German Federal Government and direct deliveries are set to be the cornerstone of this collaboration.

In later phases, the cooperation will focus on the joint production of selected Rheinmetall products in Ukraine based on a comprehensive technology transfer. In the future, as part of the collaboration between Rheinmetall and UDI, new military systems can also be jointly developed with Ukrainian and German specialists and exported from Ukraine. More on: Rheinmetall - a strong partner by Ukraine's side

About RHEINMETALL: Rheinmetall AG, based in Düsseldorf, is an integrated technology group. It is divided into five divisions: Vehicle Systems, Weapon and Ammunition, Electronic Solutions, Sensors and Actuators, and Materials and Trade. With around 28,000 employees at 132 locations worldwide, the company achieved a turnover of 6.4 billion EUR in 2022. Rheinmetall is a leading international defense industry system house and driver of innovative technological and industrial innovations in civilian markets. The focus on sustainability is an integral part of the Rheinmetall strategy.

About UKRAINIAN DEFENCE INDUSTRY (formerly Ukroboronprom): The State Concern Ukrainian Defence Industry is a state-owned Ukrainian defense industry company with 67,000 employees engaged in various areas of defense system production - including the manufacture and maintenance of armored vehicles, rockets and artillery, radar, and aircraft manufacturing. Since the early days of the war with Russia, the company has been supporting the military capabilities of the Ukrainian Armed Forces.