The Ministry of Defense will conclude contracts directly with the world’s arms manufacturers: details
The Ministry of Defense is introducing direct contracting with global arms manufacturers. Direct contracting is part of the department’s strategy to expand international cooperation and increase the combat capability of the army.
About this reported Deputy Minister of Defense Dmytro Klimenkov.
Over 12 years, the Franchise Group consulting company has created 600+ franchises. How to scale a business with a franchise in times of turbulence? Get insights and strategies at the Entrepreneurs’ Forum from Franchise Group owner and CEO Myroslava Kozachuk. Buy a ticket using the link.
Key facts
The innovation should provide Ukraine with new types of weapons that meet international standards.
“This is a new stage of cooperation that will allow us to receive modern weapons directly from manufacturers, which will certainly contribute to faster and more effective modernization of the Armed Forces.”Klimenkov noted.
Context
From December 1, 2023, a new procurement system for the Armed Forces of Ukraine, developed according to NATO principles, will be in operation in Ukraine. Previously, all procurement powers were concentrated in the Department of Resource Supply of the Ministry of Defense. The new procurement system consists of two levels. At the first level is the Department of Procurement Policy of the Ministry of Defense, at the second level are two newly created state-owned enterprises that will directly deal with procurement: the Defense Procurement Agency (SE State Rear Operator) and the Defense Procurement Agency.
In the first quarter of 2024, the Defense Procurement Agency contracted more weapons than in the entire previous year, reported the head of the agency, Maryna Bezrukova. In total, for 2024, the agency concluded contracts worth UAH 237 billion.
The Ukrainian state budget covers less than a third of the capabilities of Ukrainian manufacturers – only $6 billion out of the required $20 billion is provided for the purchase of weapons in the state budget this year, Oleksandr Kamyshin, Minister of Strategic Industries, said on April 13.
