The Ministry of Defense has ordered the production of equipment under state guarantees for the first time.
The Ministry of Defense of Ukraine is increasing funding for the purchase of military equipment to provide the Armed Forces of Ukraine with new resources.
Agreements with a Ukrainian private company stipulate the manufacturing and supply of 100 armored combat vehicles and 100 armored evacuation vehicles. These agreements involve loan funds, and the state provides guarantees for the repayment of the loan.
'With these agreements, we are opening a new page in the cooperation between the Ministry of Defense and the private sector. The conclusion of agreements using state guarantees is an important signal for business: the state is ready to support responsible manufacturers who can provide the army with modern solutions and quality products,' emphasized Deputy Minister of Defense of Ukraine Dmytro Klymenko.
The details of the agreements are not disclosed for security reasons. The agreements were signed to implement a program to enhance the defense capability and security of the state.
The deputy minister thanked colleagues from the Cabinet of Ministers and members of parliament for their assistance in expanding the scope of state guarantees for agreements with private domestic defense industry manufacturers.
The director of the procurement policy department of the Ministry of Defense emphasized that a total of up to 30 billion hryvnias is provided in the state budget for 2024 for state guarantees under agreements aimed at ensuring defense capability and security.
'State guarantees are an additional financial instrument for the procurement of military equipment for the Armed Forces of Ukraine with a long production cycle. With such guarantees, the Ministry of Defense is expanding the capabilities of the domestic defense industry,' added Hlib Kanievsky.
This is one of the reforms in defense procurement that creates new conditions for partnership with business, which is critically important in the context of countering the aggressor.
Read also
- "Putin needs a triumph": Arty Green explained why Russia is rushing to end the war with Ukraine
- Putin is running out of quality troops - Ukrainian Armed Forces officer Arty Green on the limits of Russia's military power
- Ukraine reduced goods exports in January - State Statistics Service
- Peacekeepers in Ukraine are possible despite Russia's position - former head of NATO Strategic Planning Staff
- Russian special services behind the arson of the IKEA store in Vilnius
- The medical forces of the Armed Forces of Ukraine calculated how many mobilized have already become officers
