German regulator allows creation of joint venture between Rheinmetall and Ukraine
This is said in a press release issued by the Federal Cartel Office, Ukrinform reports.
"Today, the Federal Cartel Office has approved the creation of a joint venture between Rheinmetall Landsysteme GmbH, Unterlüß and SE Ukrainian Defense Industry in Ukraine," the press release says.
"Given the geopolitical situation, the defense industry is undergoing changes. The joint venture between Rheinmetall and the Ukrainian enterprise ... is designed to build and maintain military equipment in Ukraine. This project will not lead to any competitive overlaps in Germany. We quickly gave our approval," said Andreas Mundt, President of the Federal Cartel Office.
The joint venture is to be based in Kyiv and engage in service and maintenance as well as the assembly, production and development of military vehicles. It will initially operate exclusively in Ukraine.
The approval process lasted for one month.
Rheinmetall is a manufacturer of various (armored) military equipment (including the Leopard main battle tank, the Puma infantry fighting vehicle and the Fuchs armored vehicle). Ukrainian Defense Industry is a state-owned company in the defense sector with about 67,000 employees and is subordinate to the Cabinet of Ministers of Ukraine. The state-owned enterprise actively cooperates with various enterprises of the defense industry (weapons and military equipment production).
As reported, Rheinmetall CEO Armin Papperger announced plans to open an armored vehicle plant in Ukraine in July this year. Russian politicians reacted immediately, saying the plant would be a target for attacks.
Photo: dpa
