Rheinmetalls CEO has urged the bloc to ramp up weapons spending amid the alleged Russia threat

The EU has depleted its arms stockpiles due to the Ukraine conflict, leaving it exposed to a potential Russian threat, Armin Papperger, the CEO of German arms manufacturing giant Rheinmetall, has stated.

The defense executive's warning was voiced in an interview published by the Financial Times on Monday. It comes amid a renewed attempt at launching a US-Russia dialogue, with the sides on Tuesday holding their first meeting since the start of the Ukraine conflict.

Speaking to the FT on the sidelines of the Munich Security Conference, Papperger, the head of one of the key Western firms supplying Kiev with military equipment, projected sustained high demand for arms in the region, even if peace talks lead to a Ukraine-Russia ceasefire.

At the same time, he noted that "The Europeans and the Ukrainians have nothing in their depots," referring to low arms stockpiles among Ukraine's NATO allies in the region.

The Rheinmetall chief went on to warn that "Even if the war [in Ukraine] stops - if we think that we have a very peaceful future, I think that's wrong."

Despite a more than 30% increase in EU defense spending between 2021 and 2024, Papperger argued it remains insufficient to address current security challenges. He claimed his company would benefit even if there was a ceasefire because the bloc would continue to invest in weapons as it confronted the alleged threat of Russian aggression.

Papperger criticized EU nations for under-investing in defense for decades, saying it was why they were excluded from Tuesday's Riyadh talks. Neither Ukraine nor Washington's European NATO allies were invited to participate in the Russia-US meeting, where an agreement was made to start the conflict settlement process.

The CEO's remarks come as the US has signaled its intent to minimize American military involvement once a potential truce is reached, instead seeking to shift the financial and logistical burden of supporting Kiev onto regional allies.

Vladimir Zelensky said last week that without NATO security guarantees, Ukraine would need to expand its army to 1.5 million troops - and that maintaining them would require a 50% increase in funding.

Rheinmetall has been one of the biggest winners amid rising global instability. Papperger told the FT he expects the company's annual sales to reach between €30 billion ($32 billion) and €40 billion ($43 billion) within five years - a sharp jump from the $6 billion reported in 2021, before the Ukraine conflict's escalation.

The German arms giant had previously stated that the conflict has "significantly improved business performance."

Moscow has repeatedly denounced Western arms shipments to Ukraine, arguing they only prolong the conflict without changing its outcome, while increasing the risks of a direct Russia-NATO clash.

(RT.com)