The German company Rheinmetall has established a joint venture with the Ukrainian state conglomerate “Ukroboronprom” for the construction and repair of tanks in Ukraine, the Handelsblatt newspaper reported on Friday with reference to the general director of the German arms manufacturer Reuters and news.ro.

“The contracts have been signed,” General Director Armin Papperger told Handelsblatt, adding that the cooperation will concern the maintenance and repair of armored vehicles in Ukraine, while the construction of tanks will be prepared in parallel.

Rheinmetall will hold a majority stake of 51% in the new company and provide management, Handelsblatt added.

According to Handelsblatt, the German company expects to sign contracts for two more joint ventures in the coming days – for ammunition and air defense.

“Ukraine will benefit from comprehensive technology transfer as well as short-term supplies of military equipment from Germany,” Papperger told Handelsblatt.

The publication quotes the head of Ukroboronprom, Yuriy Gusev, who welcomed Rheinmetall’s readiness to support Ukraine in the fight against Russia.

Rheinmetall has seen an increase in defense spending since Russia invaded Ukraine last year, and Germany has also provided aid and weapons to Kiev to help repel Russian forces.

Rheinmetall produces ammunition, other military equipment, as well as Leopard tanks, which Germany decided to send to Ukraine, which the company produces together with Krauss-Maffei Wegmann. The company did not comment.

Der Spiegel reported on Saturday that Germany has prepared a new package of military equipment for Ukraine worth 2.7 billion euros ($3 billion), the largest given by Berlin since the Russian invasion.