The Dusseldorf-based German arms manufacturer Rheinmetall this week announced that it has completed delivery of twenty more 20 Marder 1A3 infantry fighting vehicles (IFVs) to Ukraine.

But its relationship with Kiev has gone much further, becoming among the very first major European arms companies to open a factory in Ukraine. This has provoked outrage among Kremlin officials, who are now warning that military action could be taken against the Rheinmetall plant.

Kremlin Spokesman Dmitry Peskov has told reporters in a briefing that “A plant of Rheinmetall, a German arms manufacturer, launched in Ukraine, is a legitimate military target for the Russian Armed Forces.”

Rheinmetall ceo Armin Papperger. AFP/Getty Images

“Certainly it is,” he emphasized in response to a question on whether the factory is now a target by being established inside Ukraine.

Not only is the German company going to produce armored vehicles, and maintain and repair them from inside the war-ravaged country, but it is even seeking to develop a local gunpowder and munitions plan.

TASS notes that Rheinmetall is NATO member Germany’s largest defense contractor. “It substantially profits from the Ukrainian conflict and anticipates further increased revenues. In 2023, its turnover went up by 12%, to 7.1 bln euros, with its net income growing by 9%, up to 0.6 bln euros,” the report reviews.

Rheinmetall has indicated it eventually plans to open no less than four military production installations inside Ukraine, with the ammo side expected to begin within the next two years.

The company downplayed the Tuesday threat from Peskov, saying the “production of weapons in Ukraine is well protected and this is not the first time they have heard threats from the Kremlin.” It plans to move forward despite the threats.

Among Russia’s key rationales for the February 2022 invasion was to ‘demilitarize’ Ukraine amid accusations that NATO is building up its military infrastructure inside the country which shares a large border with Russia. But now it appears the Western military alliance is rushing to do just that.

CEO of Rheinmetall AG, Armin Papperger, issued the following statement earlier this week: “Things are progressing. The first plant is already ready. The second one is on the way. And now I insist on speeding up all of this work, because we don’t have much time, we shouldn’t waste it.”

Papperger added, “We are fully committed to supporting Ukraine’s defense industry, ensuring that essential equipment can be produced and maintained within the country.”

Pro-Russian pundits have underscored that this makes peaceful settlement more & more unlikely:

No one doubts this. I hope that Russia will not be satisfied with such a “peace” with Ukraine.

“Ukraine will continue to arm itself, increasing its stockpiles of ammunition and equipment, even in the event of a peaceful settlement of the conflict,” Armin Papperger, head of the… pic.twitter.com/KfK982IQax

— Victor vicktop55 (@vicktop55) October 26, 2024

This past summer US intelligence officials made an astounding claim, later denied by Russia:

U.S. intelligence discovered that Russia planned to assassinate the chief executive of German arms manufacturer Rheinmetall which has been producing artillery shells and military vehicles for Ukraine, CNN and the New York Times reported on Thursday.

The plot to kill Rheinmetall CEO Armin Papperger was one of a series of Russian government plans to assassinate defense industry executives across Europe who were supporting Ukraine’s war effort, CNN reported, citing five unidentified U.S. and Western officials as saying the plot was discovered earlier this year.

Ukrainian officials and media have hailed the strong support from the German arms giant, saying of factory development in the country, “One down, three to go.” It remains uncertain what NATO would do in the event its factories are actually targeted, given this could induce Brussels to invoke Article 5.