Rheinmetall Secures €5.7 Billion Contract with Romania Backed by EU Defense Fund

German defense conglomerate Rheinmetall announced it has signed a €5.7 billion contract with the Romanian government to supply a comprehensive range of military equipment. The deal will be financed by Romania using the European Union's new Security Action for Europe (SAFE) defense fund.

Under the agreement, Romania is set to receive 298 Lynx infantry fighting vehicles, Skyranger air defense systems, various types of ammunition, and four military patrol boats. The announcement came on June 2 in a press release from Rheinmetall, which described the contract as "historic" and the largest international order in the company’s recent history.

Contract Details and Production Plans

The deliveries are expected to commence in 2028 and conclude by 2030. To support the contract execution, Rheinmetall plans to establish its own production facilities in Romania and invest several hundred million euros into the country’s defense industry, bolstering local capabilities.

Armin Papperger, CEO of Rheinmetall, had earlier hinted at the forthcoming contract during a March 2026 investor presentation. According to reports from German financial media, Romania was highlighted alongside Ukraine and Italy as key customers expected to generate about €16 billion in orders for Rheinmetall in the near future.

"This agreement represents a significant milestone and marks Rheinmetall’s largest international contract in the company’s modern history," said a Rheinmetall spokesperson.

EU's Security Action for Europe Fund Enables Financing

Romania will finance the contract through resources from the EU’s Security Action for Europe (SAFE) program. Launched in May 2025, SAFE aims to strengthen the defense capabilities of EU member states by facilitating arms acquisitions and fostering defense industry development.

The fund provides participating countries with concessional loans totaling up to €150 billion. By doing so, it helps reduce European dependence on external defense suppliers—particularly the United States—and supports allied nations such as Ukraine amidst ongoing regional security challenges.

This contract with Romania is among the first major procurements enabled by SAFE, signaling a strategic shift in European defense collaboration and investment.