The Defense Ministry’s Procurement Agency has signed a direct contract with Rheinmetall for the supply of shells
20 December 18:28
“In December 2024, the Defense Procurement Agency of the Ministry of Defense of Ukraine signed a contract with Rheinmetall for the supply of 155 mm artillery ammunition. This was reported by the Agency, Komersant ukrainskyi reports.
Delivery of the contracted shells is scheduled for the first half of 2025. They can be used with most 155-mm artillery pieces in service with the Armed Forces of Ukraine.
“It is important for the Agency to expand direct contracting with the world’s leading arms manufacturers for each critical item, as it increases the reliability of supplies. We are sincerely grateful to Rheinmetall for their contribution to the supply of the Armed Forces of Ukraine,” said Maryna Bezrukova, Director of the Defense Procurement Agency.
How the Agency cooperates with foreign manufacturers
The Defense Procurement Agency signed its first direct contract with a foreign manufacturer in February this year. It was a contract with a Swedish manufacturing company and it was made possible thanks to the support of the Swedish Defense Materials Administration, FMV.
In October, the contract portfolio was supplemented by cooperation with the defense concern KNDS France. The agreement provides for the purchase of 155-mm CAESAR self-propelled artillery systems. In general, the French-German defense concern KNDS specializes in the manufacture of artillery systems, tanks, and NATO-caliber ammunition. The company recently opened a representative office in Ukraine.
The Defense Procurement Agency of the Ministry of Defense of Ukraine also has a cooperation agreement with the Norwegian Defense Materials Agency and a memorandum with the Italian Defense Industry Agency.
It was recently reported that the Defense Procurement Agency has already signed more than 20 direct contracts with global arms manufacturers. This increased the share of direct imports from 20% in 2023 to 60% this year.
But the focus is on Ukrainian arms manufacturers
As of August of this year, 70% of the contracts concluded by the Agency in 2024 were with domestic producers.
In many areas, the Ukrainian defense industry is able to meet the needs of the Armed Forces of Ukraine. And in some areas, such as unmanned technologies and electronic warfare, it has significant advantages, as Ukrainian manufacturers are in constant communication with the military and adapt their products to the conditions of the battlefield.
In total, the Defense Procurement Agency has signed contracts with more than 100 domestic manufacturers, 45% of which are UAV manufacturers.
What kind of procurement does the Agency carry out?
According to the new procurement architecture of the Ministry of Defense, the defense ministry will no longer conduct procurement itself starting in 2024. Two professional agencies, the Defense Procurement Agency and DOT, the State Operator of the Logistics, are now responsible for this.
“The State Logistics Operator is responsible for all centralized procurement of logistics supplies for the Armed Forces, including food, fuel, uniforms, helmets and body armor, etc.
the “Defense Procurement Agency” is responsible for the procurement of weapons, ammunition, and military equipment. It is:
▪️ artillery and mortar ammunition;
▪️ artillery systems;
▪️ mortars and machine guns;
▪️ drones: from reconnaissance to attack drones, from small FPVs to large “airplanes”
▪️ electronic warfare equipment;
▪️ armored and special vehicles;
▪️ pickups and vans for the military;
▪️ small arms, ammunition, grenades;
▪️ and much more.
How the state finances these procurements
The amount of budgetary funding for the purchase of weapons and military equipment allocated to the Agency in 2024 under the general fund of the relevant budget program is UAH 306.7 billion.
As of November 30, budget commitments have already been made to finance contracts for the needs of the Armed Forces of Ukraine in the amount of UAH 282.9 billion, which is 92% of the total annual budget.
How Rheinmetall cooperates with Ukraine
Rheinmetall is a German defense concern, one of the largest manufacturers of military equipment and weapons in Germany and Europe. The concern produces, among other things, Panther and Leopard tanks, Marder armored personnel carriers and PzH 2000 howitzers.
Rheinmetall is Ukraine’s most important partner in the defense industry.
Currently, Rheinmetall is the only defense contractor capable of supplying the Ukrainian military with a large number of new medium and large caliber ammunition. In addition to 20-mm ammunition for Marder infantry fighting vehicles, Rheinmetall also supplies 35-mm ammunition for the Gepard anti-aircraft gun, 40-mm ammunition, 105-mm and 120-mm ammunition for tanks, and Skynex air defense systems. Rheinmetall also supplies the Ukrainian Armed Forces with a significant amount of 155 mm mortars and artillery ammunition.
In addition to direct deliveries, Rheinmetall is also involved in ring-fenced deliveries with partner countries such as Greece, Slovakia, and the Czech Republic.
It is also worth mentioning the establishment of production of Lynx infantry fighting vehicles in Ukraine through the existing Rheinmetall Ukrainian Defense Industries joint venture, as well as the supply of a double-digit number of Leopard 1A5 main battle tanks.
Rheinmetall’s Ukrainian Defense Industries repair facility in western Ukraine already services and repairs Marder infantry fighting vehicles and Leopard 1 main battle tanks.
