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Discussions between Rheinmetall and Ukraine to build Kiev tank plant

  • By Al Mayadeen English
  • Source: Agencies
  • 4 Mar 2023 16:00
2 Min Read

Rheinmetall CEO says talks with Ukraine 'promising' as the two discuss establishing a tank plant in Kiev.

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  • The headquarters of Germany's biggest arms manufacturer Rheinmetall AG are pictured in Duesseldorf, Germany, Monday, January 23, 2023 (AP).
    The headquarters of Germany's biggest arms manufacturer Rheinmetall AG are pictured in Dusseldorf, Germany, Monday, January 23, 2023 (AP).

German arms manufacturer Rheinmetall's CEO, Armin Papperger, said on Saturday that the company is presently in "promising" discussions with Kiev about building a tank plant in Ukraine worth $213 million.

"A Rheinmetall plant could be built in Ukraine for about 200 million euros," Papperger told Rheinisce Post.

According to the CEO, such a factory would be able to manufacture up to 400 Panther tanks annually. He hoped that "in the next two months" the deal's outcome would be decided.

Even if Berlin provides Kiev with all 300 Leopard 2 tanks from the German armed forces' reserves, this will still "not be enough," Papperger told the news source, as Ukraine requires between 600 and 800 tanks to defeat Russia.

War in Ukraine cost Germany $106.7bln in 2022

The President of the German Institute for Economic Research (DIW Berlin) Marcel Fratzscher said earlier in February that since the start of the war in Ukraine, Germany has lost over $106.7 billion.

In an interview, Fratzscher told the Rheinische Post that "the Ukraine war and the associated explosion in energy prices cost Germany almost 2.5 percent, or 100 billion euros in economic output in 2022," adding that costs will continue to accumulate in the coming years.

Germany, according to Fratzscher, has been more severely impacted by the economic crisis because it is "extremely dependent on exports and global supply chains." 

Berlin also has a significant share of an energy-intensive industry that depends on increasing energy costs.

Read more: Biden: Germany in ‘very difficult’ situation amid support for Ukraine

  • Tank factory
  • Germany
  • Rheinmetall
  • Panther tanks
  • Kiev
  • Ukraine
  • tanks
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