Hungary's Blockade of EU Funding Delays Rheinmetall's Ammunition Shipments to Ukraine

Weapons Deliveries to Ukraine Face Delays

According to ХВИЛЯ: Armin Papperger, CEO of the German defense contractor Rheinmetall, has reported significant delays in weapons deliveries to Ukraine due to a lack of funding. This situation stems from Hungary's blockade of a €90 billion European Union loan package for Ukraine. Of this total, €60 billion is specifically earmarked for the purchase of ammunition and military equipment. As a result, manufactured artillery shells are currently sitting in the company's warehouses, and Rheinmetall cannot finalize a contract to supply approximately 200 units of the FV-014 Raider loitering munitions over the next two to three months.

Armin Papperger noted: 'Europe has allocated the money, but there is no access to it-and therefore it is impossible to place any orders.'

He further emphasized that 'for two or three months we have been unable to sign a contract with Ukraine-solely because of the funding delay.' Hungary announced its blockade of the payments in late February, and Slovakia has also signaled its stance on the situation. This funding impasse within the EU is creating operational challenges for Ukraine's defense industry partners.

Rheinmetall's Ukrainian Factory Construction Also Stalled

Separately, the construction of a Rheinmetall factory in Ukraine is also being delayed. While the equipment for the facility is ready, there are holdups with the building work itself. Papperger remarked: 'Obviously, building in a war zone is not easy. I understand that.' He estimates it could take another year before the plant becomes operational.

Rheinmetall has previously supplied Ukraine with short-range Skynex air defense systems, which are used to protect energy infrastructure. A mobile Skyranger version based on the Leopard-1 tank is also in service. For the 2025 fiscal year, Rheinmetall reported revenue of approximately €9.9 billion and an operating profit of €1.84 billion. Contracts related to supporting Ukraine contributed €1 billion to the company's earnings.

• The FV-014 Raider is a loitering munition, a high-precision kamikaze drone with a stated flight range of up to 100 km and a 5 kg warhead.
• The financing delays are creating additional difficulties in providing Ukraine with the necessary military supplies.

These holdups in arms deliveries, caused by the blocked funding, could significantly impact Ukraine's ability to effectively resist aggression. In wartime conditions, the timely supply of military hardware and ammunition remains critical, as any delay can influence the course of combat operations. Therefore, decisions by Hungary and other nations regarding financial support for Ukraine are of heightened importance within the context of the ongoing conflict.