Rheinmetall, unbowed by reported Russian plot, announces order for ammo factory in Ukraine

WASHINGTON — Just weeks after news broke of a purported Russian-backed assassination plot against the CEO of Rheinmetall AG, the German defense firm announced today it had received a formal order from the Ukrainian government to build an ammunition factory in-country.

Rheinmetall first announced plans for the new factory in February as part of a new joint venture with a Ukrainian firm, but said in a release that today “marks the starting point for the realisation of the project.”

The company did not reveal the value of the contract beyond saying it was “in a low three-digit million euro range,” adding, “It is foreseen to begin in short term and to be completed within a few years” and be commissioned within two years.

“We are putting our words into action and together with our partner we will create a Ukrainian competence centre for ammunition,” Rheinmetall CEO Armin Papperger said in the release. “The order underlines the confidence in Rheinmetall’s expertise and manufacturing capacities. We are grateful to be able to support the country in its re-industrialisation and in strengthening its defence capability.”

RELATED: Northrop planning to build munitions inside Ukraine

Increased production of ammunition within Ukrainian borders will certainly come as a boon to Kyiv’s forces, who even with significant Western aid packages have been unable to match Russian artillery output. Rheinmetall already has an armor factory in Ukraine where it produces Lynx Infantry Fighting Vehicles for Kyiv’s use.

The official opening of a Western defense firm in Ukraine would be notable regardless of which firm it is, but Rheinmetall’s support of Ukraine has been a headline subject of late. It was Papperger who was purportedly the target of a foiled, Moscow-backed assassination plan, according to a CNN report earlier this month. CNN said the plot was part of a series to target defense industry executives in Europe, while the Kremlin said the report amounted to a “fake story.”

At the time, NATO Secretary General Jens Stoltenberg said he wouldn’t comment on the specific CNN report, but said NATO members have “seen a pattern, a Russian campaign, organized by the security services, to commit hostile actions against NATO allies.”

Stoltenberg listed cyberattacks, arson and other “different types of hostile actions” as among the actions perpetrated by Russia.

RELATED: After reported plot against defense CEO, NATO chief says Russia can’t ‘intimidate’ alliance

“These are not standalone incidents; these are part of an ongoing Russian campaign,” he said. “The purpose of the campaign is to intimidate NATO allies” into halting their aid to Ukraine.

At the Farnborough Airshow this week, there was little sense that Russia’s purported scheme will impact European support for Ukraine.

For instance, Lorenzo Mariani, co-general manager of Italian firm Leonardo, told Breaking Defense that while his firm has increased physical security in recent months, that has been more about protestors than concerns over leadership safety. The bigger issue Leonardo has seen are increased cyber attacks.

The company doesn’t see a “really big risk of physical disruption, but there are, for sure, high risks of cyber attacks,” he said. His firm has seen hundreds of cyber intrusion attempts per day, he said, and while the majority are “negligible,” some are more serious.

“So we take care of that. We protect our data, we protect our systems. We absolutely give the maximum importance to doing all what we have to do in order for our digital part to be up and running and secure,” he said.

Asked if he was concerned from the physical safety of his plants or employees, Mariani said, “Not at the moment, but we still keep our awareness and our attention very, very high.”