In an interview with the international media platform Table Media on February 16, 2026, Papperger noted that "Russia has no interest in ending the war." He urged for sustained aid to Ukraine, highlighting Rheinmetall's capacity to provide additional defense equipment.
"We are currently producing more ammunition than is stipulated in our current contracts with Ukraine," Papperger remarked, though he noted that funding remains a hurdle for certain product lines.
Global Arms Sales on the Rise
The demand for weaponry is reflected in the latest SIPRI report (2024), which shows a significant surge in global arms industry revenues:
- Top 100 Global Producers: Revenue reached $679 billion, a 5.9% annual increase.
- European Companies: Saw a 13% rise in sales.
- German Manufacturers: Led the charge with a 36% revenue jump.
- Rheinmetall's Growth: The company climbed to 20th in the global rankings, with military turnover increasing by 47% to €8.2 billion.
Expanding the "Baltic Ammunition Belt"
Rheinmetall is aggressively expanding its manufacturing footprint in the Baltic region to secure NATO’s eastern flank and support Ukraine:
- Lithuania: Construction is underway for a 155mm artillery shell plant in Baisogala. With an investment of €300 million, the facility is expected to produce tens of thousands of shells annually starting in late 2026.
- Latvia: Plans are in place for a similar €275 million facility, with an estimated launch in 2027.
- Ukraine: The company is also expanding domestic Ukrainian production, aiming to increase shell output from 150,000 to 350,000 units per year through a €600 million investment.
Germany’s Rearmament Push
Parallel to industrial expansion, the German government is finalizing a major €4.3 billion rearmament program through 2033. This includes:
- €536 million for strike drones and loitering munitions from startups Helsing and Stark Defense.
- Support for the 45th Panzerbrigade, which is permanently stationed in Lithuania.
At the Munich Security Conference, German Chancellor Friedrich Merz echoed Papperger’s long-term outlook, stating that the war could only end when Russia’s military and economic potential is fully exhausted. He emphasized that any peace negotiations must ensure Ukraine's protection and future deterrence.
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