site.btaEconomy Ministry's Budget Amended to Increase Capital in Ordnance Plants

At its sitting on Tuesday, the Council of Ministers approved changes to the 2025 budget of the Ministry of Economy and Industry, the Government Information Service reported. The decision is related to an increase of the State's shareholding in the capital of Iganovo EAD and State Consolidation Company EAD, and a respective increase in the capital of the VMZ ordnance plant.

The funds for the increase in the capital of Iganovo EAD will be used to pay for certain technologies, patents, know-how, and engineering solutions. They are in accordance with the scope of the Technological Collaboration Agreement signed on December 3, 2025, between Iganovo EAD and Rheinmetall Waffe Munition GmbH (RWM GmbH). 

The funds for increasing the capital of State Consolidation Company EAD will provide targeted financing to the VMZ ordnance plant. The purpose is to secure the plant's shareholding in the establishment of a joint venture with Rheinmetall AG for the implementation of a project to build a gunpowder and ammunition factory, and the funds will be provided in the form of capital. The joint venture will be a joint-stock company named Rheinmetall-VMZ, in which VMZ EAD will hold 49% of the capital and Rheinmetall 51%.