In a landmark move, Germany’s Rheinmetall has announced the delivery of additional Skyranger 35 air defense systems to Ukraine, financed with funds derived from frozen Russian assets.
The deal—valued at hundreds of millions of euros—marks one of the first instances in which seized Russian resources are directly transformed into weapons for Ukraine’s defense. It was reported by the company.
The systems, to be built and integrated at Rheinmetall Italia’s headquarters in Rome, symbolize a shift in European defense strategy: from cautious financial aid to proactive militarization of confiscated Russian assets.
“We are grateful for the trust that Ukraine has placed in us. We would also like to thank the EU country, for the support, which underlines our continued efforts to support Ukraine,” said Armin Papperger, Rheinmetall’s CEO.
The use of frozen Russian assets—estimated at over €200 billion across the EU and G7—has long been debated in Brussels. Until now, these assets generated interest revenue to fund humanitarian and military support, but the direct conversion into weapons contracts represents an unprecedented precedent.
For Kyiv, this decision is strategically important. It ensures long-term, predictable financing for its defense industry and signals that the West is ready to reinvest Russian wealth into Ukraine’s survival. For Europe, it sets a new legal and moral framework: aggression now directly funds deterrence.
The Skyranger 35 is Rheinmetall’s newest mobile short-range air defense system, designed to counter drones, helicopters, and low-flying aircraft—precisely the threats Ukraine faces daily from Russian Shahed and Lancet attacks.
Mounted on the Leopard 1 chassis, the system combines armored mobility with the firepower of a gun-based platform. Its key features include:
The Skyranger 35 is designed to replace the aging Gepard self-propelled anti-aircraft guns, which have been essential in Ukraine’s defense but are nearing the limits of their service life.
German media had previously reported that the Ministry of Defense in Berlin was planning to procure Skyranger units to cover the air-defense gap left by the Gepards’ retirement.
For Ukraine, the arrival of the Skyranger 35 comes at a pivotal moment. The country’s critical infrastructure is targeted by waves of Iranian-made Shahed drones launched from Russian territory and occupied Crimea. While Western partners have supplied high-end systems like Patriot and IRIS-T, their high cost and limited number make them unsuitable for defending every region.
Gun-based systems like the Skyranger 35 offer a cost-effective layer of protection against low-cost aerial threats. Their mobility and rapid-fire capability make them ideal for defending cities, logistics hubs, and energy facilities—the exact targets of Russia’s drone campaign.
The decision also coincides with Germany’s broader defense commitment. Defense Minister Boris Pistorius recently confirmed that Berlin will transfer two additional Patriot batteries to Ukraine by the end of 2025, signaling a continued effort to strengthen Ukraine’s multi-layered air defense network.
Beyond its tactical value, the Rheinmetall deal carries powerful symbolic weight. The decision to fund the production using frozen Russian assets transforms the narrative of sanctions from punitive to constructive retaliation—turning the fruits of aggression into the tools of defense.
For Moscow, it sends a clear message: Russia’s war chest is being repurposed against it. It shows Europe that defense assistance and economic sanctions can be coordinated into a unified strategic tool.
At the same time, the move underscores a growing Europeanization of Ukraine’s defense supply chain. With Rheinmetall expanding production in Italy, Germany, and Hungary, and other EU members joining joint procurement frameworks, Europe is beginning to anchor its own defense-industrial autonomy while supporting Kyiv.
The Rheinmetall–Ukraine agreement points to a maturing European defense ecosystem. Three emerging dynamics are worth noting:
Europe’s message is increasingly clear: Russian aggression will now finance its containment.
The delivery of Skyranger 35 systems is more than another weapons contract—it is a strategic milestone. It demonstrates Europe’s capacity to move from symbolic sanctions to tangible defense output, redefining the logic of punishment and deterrence in the 21st century.
For Ukraine, it means better protection for its people and infrastructure. For Europe, it signals a new phase of collective resilience, where justice is built into defense—and where Russia’s frozen billions are finally repaying the damage they financed.
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