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Germany’s KNDS and Ukraine Establish New Joint Venture to Maintain Leopard Tanks

Germany’s KNDS Deutschland, the manufacturer behind the iconic Leopard 2 tank, has officially launched a joint venture with a Ukrainian defence company. This collaboration marks a crucial milestone in strengthening Ukraine’s defence capabilities and industry, offering a new avenue for the maintenance and repair of military equipment supplied by Germany to Ukraine’s armed forces.

The announcement was made by Ukraine’s Minister of Strategic Industries, Herman Smetanin, who expressed his satisfaction with the establishment of this joint venture. He said, “I am pleased to announce the official opening of a joint venture between KMW (KNDS Deutschland) and one of Ukraine’s defence enterprises,” a move that promises to enhance Ukraine’s military readiness.

The focus of this newly formed partnership will be to maintain and repair military equipment provided by KNDS to the Ukrainian Defence Forces. The first units of this equipment arrived in Ukraine in 2022, with Ukrainian specialists having already undergone training in Germany. As part of the venture, the first systems have now been installed at local facilities, ensuring that the necessary repairs can be conducted on-site, reducing the need for long transport times to foreign repair centres.

Smetanin stressed the importance of this joint venture in ensuring a faster turnaround time for repairs, which is a vital factor in the midst of ongoing conflict. By localising maintenance operations, Ukraine will be able to address issues more quickly, ensuring its military assets remain operational and ready for deployment.

This partnership follows a similar agreement between Rheinmetall, another German defence company, and Ukraine’s state concern, Ukroboronprom. In October 2023, Rheinmetall Ukrainian Defense Industry LLC was established, aiming to facilitate the repair and maintenance of military equipment supplied by allies, with long-term plans to localise the production of Rheinmetall’s leading equipment models in Ukraine. By June 2024, the first joint production site will be operational, accelerating vehicle repairs and supporting the troops on the ground more efficiently.

Rheinmetall further expanded its commitment to Ukraine in October 2024, announcing plans for a second military factory. With four such facilities planned in total, the new plants will be critical in addressing ammunition and equipment shortages by producing essential military supplies within Ukraine’s borders.

This move represents a significant step in enhancing Ukraine’s self-sufficiency in military logistics and equipment maintenance, contributing to the country’s ongoing efforts to resist Russian aggression and strengthen its defences.

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