Bulgaria is set to strengthen its defense industry and integrate more closely with NATO and European Union defense capabilities through a new partnership between “Vazovski Masinostroitelni Zavodi” (VMZ-Sopot) and the German defense concern Rheinmetall. Defense Minister Atanas Zapryanov announced on Nova TV that a joint company will be established, with Rheinmetall holding 51% ownership and VMZ-Sopot 49%. Bulgaria’s share of the investment is projected at around 500 million euros, financed through the European SAFE mechanism, a loan model similar to those used by countries during the COVID-19 pandemic.

The minister highlighted that this project will allow Bulgaria to modernize its defense production, moving away from Soviet-era ammunition standards. Currently, VMZ-Sopot produces 122 mm and 152 mm artillery shells, but the new facility will feature an assembly line for 155 mm shells, enabling the Bulgarian armed forces to rearm with modern NATO-compatible munitions. Zapryanov stressed that this initiative aligns with both Bulgaria’s national interest and Europe’s broader goals to expand weapons production, integrate defense capabilities, and meet NATO requirements for updated military assets and increased defense spending.

Construction of the new factory is expected to be completed within three years of the agreement, aligning with SAFE mechanism investments. Zapryanov provided details on the financial structure, noting a 10-year grace period for the loan, with repayment scheduled over 35 years. The project is expected to generate approximately 1,000 new jobs, adding to the thousands already employed in the sector. He cautioned that without modernization, demand for Soviet-standard ammunition could decline after the Ukraine conflict, narrowing the market for Bulgarian enterprises.

Regarding political responsibility for the agreement, Zapryanov emphasized the role of the government, specifically the GERB party and Prime Minister Boyko Borissov, in ensuring that the National Assembly provides budgetary approval. He reiterated that Bulgaria’s defense policy, both within NATO and independently, emphasizes deterrence: maintaining military potential ensures that potential aggressors understand any hostile actions will have consequences.

Zapryanov also addressed security considerations after the conclusion of the Russia-Ukraine war, noting that Bulgaria actively participates in both political and military planning. This includes oversight of territorial maritime security, as stressed by Prime Minister Rosen Zhelyazkov, and the long-term threat posed by sea mines, which will require ongoing attention. He was clear that there are no plans to deploy Bulgarian personnel to Ukraine once hostilities end.

Source: Nova TV