The Cabinet of Ministers of Ukraine determined the maximum amount of funding for the Defense Procurement Agency (AOD) and the State Rear Operator (DOT). About this reported head of JSC Arsen Zhumadilov.
In the funding forecast, there is a shortage of funds for both AOZ and DOT. This is due to the limits established by the Cabinet of Ministers: 450 million hryvnias are provided for the Agency, and 250 million for the State rear operator.
According to Zhumadilov, the main item of expenditure of both structures is the wage fund. As a result of the planned unification of these institutions, its volume will be reduced. The merger of the two institutions is expected to take place after the end of martial law.
“Preparations (for the unification) must be started already. And it is within this framework that the Ministry of Defense’s order on the reorganization of the SE “State Rear Operator” is being approved. So that all legal succession under contracts and everything else will be transferred to the SE “Defense Procurement Agency”, – explained Zhumadilov.
According to forecasts, by the end of the year both the State Rear Operator and the Defense Procurement Agency are expected to have a funding shortfall. This is due to the fact that the Cabinet of Ministers has set limits on the amount of funds: for AOZ — 450 million hryvnias, for DOT — 250 million hryvnias.
After the active phase of the war is over, there will probably be a reduction in troop numbers, which will reduce the need for spending on military equipment. In such a situation, maintenance of AOZ and DOT can become a significant financial burden for the state, which will have other priority needs.
