Germany's KNDS Deutschland, a manufacturer of Leopard 2 tanks, has officially opened a joint venture with a Ukrainian defense company, Ukraine's Strategic Industries Minister Herman Smetanin reported on Jan. 21.
"This will significantly speed up repairs and strengthen our defense capabilities," he said.
The collaboration aims to expedite equipment repairs for Ukrainian armed forces and boost the local economy with investments and job creation.
Smetanin noted that Ukrainian specialists have already been trained in Germany, and initial systems have been installed at local facilities.
The joint venture aligns with Kyiv's strategy to localize weapons production. In July 2024, German arms manufacturer Rheinmetall also confirmed plans to construct an ammunition factory in Ukraine.
The ammunition factory project is expected to take several years to complete, marking a critical step in fortifying Ukraine's defense infrastructure and deepening its partnerships with Western defense companies amid the ongoing war with Russia.
Over the past year, Ukraine has significantly increased its domestic weapon productions, accounting for about 33 - 34% of its annual weapons needs — up from less than 10% before the full-scale invasion, President Volodymyr Zelensky said on Jan. 15.
Ukraine aims to spend a record $35 billion on weapons production in 2025, according to Defense Minister Rustem Umerov. The Ukrainian government intends to provide $17 billion, while the rest may be financed by allies.
Mika Aaltola
