At a meeting on 1 February, the Government adopted three resolutions that will help strengthen Ukraine’s defence industry. This was stated by Prime Minister Denys Shmyhal.
In particular, the document on the deregulation of ammunition production was approved.
“We are extending the pilot project for the production of ammunition for drones to the production of ammunition of all types and improving the procedure for registering manufacturers. New enterprises will be able to start working quickly. In this way, we will strengthen our army in the shortest possible time,” said the Prime Minister.
He reminded that the project was launched last summer. To do this, the Government expanded the range of potential manufacturers, eliminated bureaucracy, and created clear algorithms – from development to commissioning. Over the past six months, more than 10 manufacturers have been registered, more than 20 samples of ammunition have been approved for use, and another 30 are in various stages of testing.
Another Cabinet decision concerns the pricing of UAV production. According to the Prime Minister, drone manufacturers will now have to revise their price calculations downwards if their profit exceeds 25%.
“This will help eliminate potential risks of overpayment and misuse of funds in the public procurement of drones. Indeed, the state is interested in fair and transparent contracts,” said Denys Shmyhal.
In addition, defence procurement will now be carried out under a competitive procedure through the closed module of the Prozorro system.
“We are solving several tasks at once. Firstly, we guarantee continuity, sustainability and controllability in the supply of our army with everything it needs. Secondly, we are establishing transparent pricing, where the state does not overpay and businesses make a profit. Thirdly, we are creating safeguards against leaks of information that pose security risks,” the Prime Minister said.
Denys Shmyhal stressed that the issue of defence capability and the provision of the Ukrainian army was a top priority. This year, hundreds of billions of hryvnias will be allocated to ensure that the Ukrainian military has everything it needs.