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Germany & Ukraine Launch Co-Investment Drive in Defence Production

by Roman Cheplyk
Thursday, June 12, 2025
2 MIN
Germany & Ukraine Launch Co-Investment Drive in Defence Production

New capital will fund joint manufacturing lines—both in Germany and in Ukraine—for strike-drones and long-range missiles

Kyiv, 12 June 2025 —
President Volodymyr Zelensky and German Defence Minister Boris Pistorius confirmed a fresh bilateral initiative that injects additional funds into the production of high-end weaponry. The agreement follows Zelensky’s earlier talks with Chancellor Friedrich Merz and centres on two priority areas:

  1. Strike-Drone Ecosystem – Expansion of design, assembly and maintenance facilities, leveraging Ukraine’s combat-tested UAV platforms and Germany’s precision-engineering base.

  2. Long-Range Missile Capability – Joint programmes to accelerate series production of stand-off munitions, enhancing Ukraine’s reach beyond the front line.

“We have secured new investment packages for manufacturing—both inside Ukraine and on German soil,” Zelensky told reporters. “This will directly translate into more drones, more missiles, and stronger long-range deterrence.”

Industrial Footprint

  • Ukrainian Sites will focus on rapid prototyping, combat integration and battlefield sustainment.

  • German Facilities will provide advanced component production, quality-assurance and export-licence support.

The arrangement is expected to attract complementary financing from defence primes and venture capital funds aligned with NATO’s DIANA innovation initiative.

Strategic Context

  • Operational Demand: Ukraine fires thousands of loitering munitions monthly and aims to triple output of precision systems by year-end.

  • NATO Deterrence: Zelensky noted that long-range platforms destroyed in Ukraine’s recent “Operation Spider Web” were used by Russia to rehearse strikes against Alliance territory—underscoring the need for stronger deep-strike capacity.

Next Steps

  • A joint steering committee will finalise investment tranches, intellectual-property sharing and export-control safeguards in July.

  • Early production runs are slated for Q4-2025, prioritising systems with 300- to 800-km strike envelopes.

Bottom line: The Berlin-Kyiv co-investment pact shifts Ukraine from an emergency buyer to a co-producer, strengthens Europe’s defence supply chain and signals to investors that high-tech manufacturing inside—and for—Ukraine is open for business.

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