Assassination Plans Against Rheinmetall CEO: Risks for Western Defense Companies in Ukraine Increasing

The alleged plans by Russia to assassinate the CEO of Europe's largest munitions manufacturer underscore the escalating dangers for Western defense companies aiming to operate in Ukraine. NATO officials are convinced that Moscow is behind the supposed assassination plot against Armin Papperger, head of Düsseldorf-based Rheinmetall. Rheinmetall is a leading supplier of military equipment to Ukraine. "Targeted assassinations of high-ranking, particularly non-Russian figures, are definitely an escalation," explained Lauren O'Loughlin, an analyst at Dragonfly, a security and intelligence service company. As Russia's war enters its third year, Western defense firms are accelerating the relocation of their production facilities to Ukraine. Rheinmetall has decided to soon produce 155-mm shells in the safer western part of Ukraine. Papperger announced this to the Financial Times following the revelation of the assassination allegations. Kremlin spokesman Dmitry Peskov vehemently denied the existence of such a plan, calling the reports "fake news." The possibility that Western CEOs are on Russian hit lists, however, explains why many Western companies have been hesitant to establish a significant production presence in Ukraine. Chloe Lemaire, a defense industry analyst at investment bank Jefferies, stated that Western companies are currently largely confined to maintenance work on-site. However, discussions about broader cooperation, particularly after the high-intensity phase of the war, remain ongoing. A European defense expert insisted: "We want to support them and rebuild their industrial base." The Russian invasion in 2022 led to a boom in the defense sector, particularly in Europe, where defense spending reached levels not seen since the Cold War. The West aims to reduce Ukraine's dependency on NATO allies and shorten the delivery times for military equipment. Russian threats against new Western production facilities in Ukraine are therefore not unusual. Trevor Taylor from the Royal United Services Institute emphasized that a production site in Ukraine comes with significant security risks and an effective supply chain must be ensured. Nevertheless, Ukrainian officials are pushing for the formation of joint ventures with Western defense companies. Companies like BAE Systems, Babcock, and KNDS have announced plans to expand maintenance and repair services in Ukraine. Czechoslovak Group also plans to enter into production partnerships in Ukraine. Olexandr Kamyshin, Ukrainian Minister for Strategic Industries, concluded with an appeal to Western companies: "We are a creative and reliable partner that you want on your team in difficult times.