Defense concern Rheinmetall has signed an agreement with the Bundeswehr to provide logistical support during troop redeployments both in Germany and abroad.
This was reported by Economic Pravda with reference to Reuters.
The framework agreement will be valid for three years, and its value could reach EUR 260 million (USD 271 million).
The contract can be extended until 2029.
"Due to its central location in Europe, Germany is both a transit country and a logistics center for collective defense. Therefore, within NATO and the EU, the country plays a key role in the redeployment of forces," Rheinmetall noted.
The company clarified that the agreement covers not only the Bundeswehr, but also the armed forces of allies, in particular NATO.
The contract was signed against the backdrop of increased interest in the European defense sector.
This followed statements by Donald Trump, who called on European countries to increase spending on their own security.
Rheinmetall shares, which have risen almost tenfold since the start of russia's full-scale invasion of Ukraine, rose another 0.7% on Wednesday.
As Ukrainian News Agency earlier reported, Rheinmetall's ammunition plant in Ukraine, the construction of which was announced in February 2024, will begin operating in 2026.
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