German defense giant Rheinmetall has struck a deal with Romanian authorities worth €5.7 billion. The country will receive 298 Lynx combat vehicles, Skyranger air defense systems, numerous munitions, and four military boats. This was announced in a press release from Rheinmetall on Tuesday, June 2.
The defense conglomerate called the deal "historic" and "the largest international order in the company’s recent history." According to Rheinmetall, the first deliveries under the contract are set to begin in 2028 and conclude by 2030. To facilitate this, the company plans to establish its own manufacturing in Romania and invest several hundred million euros into the country's defense industry.
CEO of Rheinmetall Armin Papperger hinted back in March 2026 at an upcoming deal with Romania. As reported by the German newspaper Frankfurter Allgemeine Zeitung, in a presentation for investors regarding the order book forecast, Romania was highlighted as one of the key weapon-buying countries alongside Ukraine and Italy. Rheinmetall expects to receive orders from them soon totaling around €16 billion.
The deal with Romania will be funded by the EU's defense fund
Romania plans to finance the deal through funds from the EU program Security Action for Europe (SAFE). This program is aimed at strengthening the defense capabilities of EU countries, purchasing weapons, and developing the defense industry. A total of €150 billion will be provided to participating states in the form of low-interest loans for these purposes.
The SAFE fund was established in May 2025 to bolster European defense amid the growing threat from Russia. Among its goals, SAFE also aims to reduce Europe's dependence on the US for defense and to assist Ukraine.