Rheinmetall announces billions-worth deal for Ukraine ammunition

16.06.2023, 12:32
Rheinmetall announces billions-worth deal for Ukraine ammunition - Photo
A Gepard anti-aircraft system. Photo via EPA

Rheinmetall, a German arms manufacturer, expects to sign a multibillion-euro contract with the German government to supply Ukraine with ammunition for Gepard anti-aircraft systems, its CEO Armin Papperger told Reuters news agency.

"Germany is about to seal a large framework contract with us," Mr Papperger said on Thursday evening in Brussels, where he took part in a first-ever joint session of NATO defence ministers and some 20 defence industry bosses.

The deal, worth several billion euros, is expected to be announced in the next six weeks.

In addition, in July, Rheinmetall will deliver the first 35mm rounds produced at a new production line in Germany to Ukraine for use in the country's Gepard anti-aircraft guns, Mr Papperger said.

"The government has ordered 300,000 rounds. ... We will certainly deliver some 40,000 to 60,000 rounds this year," he added.

Rheinmetall set up the production line after Switzerland refused to allow the export of 35mm Gepard ammunition to Kyiv.

For the entire year, Mr Papperger said he expects defence orders worth a "double-digit billion euros" sum from a whole variety of deals – on vehicles, ammunition, electronics, and radar systems.

Shares were up 3.6 percent on Friday morning following Mr Papperger's comments, Reuters notes.

Earlier, Rheinmetall was reported to be readying the transfer of an additional 14 Leopard 2 main battle tanks to Ukraine, paid for by Denmark and the Netherlands.

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