Rheinmetall has founded a joint venture with Ukroboronprom to build and repair tanks in Ukraine.

According to reports, the details of the agreement were discussed by President Volodymyr Zelenskyy and Armin Papperger, CEO of Rheinmetall, during his visit to Ukraine.

"The contracts have been signed," said Papperger in an interview with Handelsblatt.

Rheinmetall will hold a majority stake of 51% in the new company and will provide the management.

The cooperation will focus on technical maintenance and repair of armored vehicles in Ukraine, while also preparing for tank production.

"Ukraine will benefit from a comprehensive technology transfer as well as a short-term supply of military equipment from Germany," said Papperger.

Yurii Husev, head of "Ukroboronprom," who was quoted by Handelsblatt, welcomed Rheinmetall's willingness to support Ukraine in its fight against Russia.

The German company expects to sign contracts to create two more joint ventures in the coming days – for the production of ammunition and air defence (Ukr).

Rheinmetall is the largest German defence company. According to its own data, the company is one of the three largest manufacturers of military equipment and ammunition in the Western world. Rheinmetall's market value is currently over ten billion euros.

Earlier, the company wanted to provide Ukraine with a significant amount of artillery ammunition and planned to produce up to 600,000 shells per year.