Germany's Federal Antimonopoly Office has granted Rheinmetall a permit to establish a defence joint venture in Ukraine with the Ukrainian state-owned Ukrainian Defence Industry Group, reports Rheinmetall’s press service.
The company has already applied for permission from other relevant agencies and is expected to receive it soon.
"The joint venture is to be based in Kyiv and will be engaged in maintenance, assembly, production and development of military vehicles," the statement said.
It is specified that initially the company will operate exclusively in Ukraine. There will be no overlap of competition in Germany, and there are no signs of competition concerns.
Cooperation between Rheinmetall and the Ukrainian defence industry should strengthen Ukraine's defence sector and national security.
According to the agreement, Ukraine will benefit from comprehensive technology transfer, the creation of defence equipment capabilities at the site, additional local added value, and the prompt delivery of military equipment from Germany.
Initially, the cooperation will focus on the maintenance and repair of vehicles transferred to Ukraine under the multilateral equipment exchange program, as well as those directly supplied to Ukraine by Germany.
In the next stages, the partners intend to jointly manufacture selected Rheinmetall products in Ukraine.
In the future, cooperation may include joint development of military systems by teams of Ukrainian and German specialists, including for further export to Ukraine.
Earlier it was reported that Rheinmetall will not change its plans to build a tank plant in Ukraine due to Russia's threats to intensify bombing of Ukrainian territory.
Rheinmetall is cooperating with Ukroboronprom, which has offered a large number of locations for production. Rheinmetall intends to establish a joint venture with Ukroboronprom, in which it will have a larger stake.
Rheinmetall plans to produce ammunition, armored vehicles and Panther battle tanks in Ukraine. The plant is expected to eventually produce up to 400 tanks a year. The plant will also repair Fuchs armored vehicles.