Rheinmetall, a leading global defense manufacturer, is building new plants in both Ukraine and Germany. Despite Ukraine’s ongoing war and urgent defense needs, construction is progressing faster in Germany, historically a country with less emphasis on military spending.
Armin Papperger, CEO of Rheinmetall, recently expressed dissatisfaction with the pace of construction in Ukraine. He cited insufficient financial contributions from the Ukrainian side and bureaucratic delays as key reasons. Although the first contract with Ukraine has been signed, funding and administrative obstacles are slowing down the project.
In Germany, with greater resources, Rheinmetall plans to double annual artillery shell production to 350,000 units. Ukraine, however, continues to face hurdles. Other western investors have reported similar issues with Ukrainian bureaucracy.
Past projects illustrate how bureaucracy and excessive formalism have hindered Ukraine’s infrastructure development. The article urges reform to simplify administrative procedures, especially for defense projects vital in wartime.
The material also underlines the need for a strategic management approach and highlights the importance of a favorable investment climate during armed conflict.
