Armin Papperger, CEO of German defense giant Rheinmetall, said there is a lack of funding to purchase weapons and military equipment for Ukraine. The ammunition, which the company has in stock, cannot be supplied to the Ukrainian Armed Forces because the European Union has delayed approval of a €90 billion loan.
"We continue to produce most of our products [for Ukraine]. For example, now I have artillery ammunition in my warehouses, which I cannot sell on Ukraine," Papperger noted in an interview with DW.
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A €90 billion EU loan for Ukraine, originally set to be approved on February 24, remains blocked by Hungarian Prime Minister Viktor Orbán, who is demanding the restoration of the Druzhba pipeline. Moreover, the Prime Minister of Slovakia Robert Fico has stated that if Orbán loses the election, he will continue to block funds for Ukraine.
In response, the EU has a "plan B," under which Baltic and Northern European countries willing to support Ukraine will provide funding in the first half of the year. The loans, which are bilateral, amount to around €30 billion. They will not require approval from other EU countries.
This is not the first time Rheinmetall has complained about the lack of funds to supply weapons to Ukraine. While the company previously faced production issues, it now has the capacity to supply much more—including air defense systems, ammunition, and even tanks—but there is no funding to purchase them.
For example, last November, no funds had yet been allocated for the production of Rheinmetall Lynx infantry fighting vehicles in Ukraine. However, in early January, Rheinmetall announced plans to deliver the first five vehicles and begin ordering additional IFVs.
Regarding ammunition, Papperger highlighted plans to build a factory in Ukraine.
Currently, the equipment is ready, but Rheinmetall is waiting for the completion of all necessary civilian work. He noted that the process is being delayed and it may take about another year before construction begins.
Although the contract for the plant was signed in July 2024 and production was expected to start in summer 2026, construction has been delayed.
Initially, Rheinmetall said the delay was due to bureaucracy in Ukraine, but last fall it announced that Ukraine had decided to relocate the future plant.
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