Rheinmetall announced that it has ammunition ready for Ukraine, but no money to buy it
This was reported by Defense Express, citing a statement by Rheinmetall CEO Armin Papperger in an interview with DW.
Armin Papperger, CEO of German defence giant Rheinmetall, said that the company has ammunition ready for Ukraine but cannot sell it due to a lack of funding. According to him, artillery shells are already in storage but cannot be delivered to the Ukrainian army until there are funds to purchase them.
Rheinmetall emphasises that it continues to produce a significant portion of its products for Ukraine. At the same time, the problem now lies not so much in the pace of production as in the lack of money to purchase these weapons for the Ukrainian Armed Forces.
The publication notes that this primarily concerns the delay in approving a €90 billion European Union loan for Ukraine. According to Defense Express, this package was supposed to be approved on 24 February, but it is being blocked by Hungarian Prime Minister Viktor Orbán, who is demanding the resumption of the Druzhba oil pipeline. The publication also writes that Slovak Prime Minister Robert Fico has stated his readiness to continue blocking funds for Ukraine if Orbán loses the election.
In response, the EU is considering a "plan B," according to the article. It provides that the Baltic and Northern European countries that support Ukraine will provide funds in the first half of the year in the form of bilateral loans. The estimated amount of such funds is €30 billion, and this money will not require separate approval by all EU countries.
This is not the first time Rheinmetall has announced its readiness to supply Ukraine with more weapons than it can actually finance. While the company previously cited production constraints, Defense Express now estimates that the concern has the capacity to supply significantly more, including ammunition, air defence systems and even tanks, but lacks the funds to purchase these products.
The article cites the situation with Lynx infantry fighting vehicles as an example. Last November, it became known that no funds had yet been allocated for the production of these vehicles in Ukraine. At the same time, in early January, Rheinmetall announced plans to supply the first five vehicles and to begin the next stage of ordering additional IFVs.
Separately, Papperger mentioned the project to build an ammunition production plant in Ukraine. According to him, the equipment for this enterprise is already ready, but the company is waiting for the completion of all the necessary civil works. He noted that the process is being delayed and it may take about another year before construction actually begins.
Despite the fact that the contract for the construction of this plant was signed back in July 2024, and the launch of production was planned in 24 months, i.e. in the summer of 2026, the start of construction is being delayed. Initially, Rheinmetall explained this by bureaucratic procedures in Ukraine, and last autumn reported that the Ukrainian side had decided to change the location of the future enterprise.
