“The Ministry of Defense concluded the first contracts under state guarantees with a Ukrainian private company.”, — write: www.epravda.com.ua
The Ministry of Defense concluded the first contracts under state guarantees with a Ukrainian private company.
About this reported press service of the ministry.
The total amount of the contracts is UAH 4.4 billion, the company will manufacture and supply 100 special armored combat vehicles and 100 armored evacuation vehicles.
The agreements provide that the manufacturer will attract credit funds to fulfill the contract, and the state will provide appropriate guarantees for repayment of the loan at the expense of the state budget.
For security reasons, the details of the contracts are not disclosed.
“These contracts open a new page in the cooperation between the Ministry of Defense and the private sector. The conclusion of contracts involving state guarantees is an important signal for business: the state is ready to support responsible manufacturers capable of providing the army with modern solutions and high-quality products,” commented Deputy Minister of Defense Dmytro Klimenkov.
According to the director of the Ministry of Defense procurement policy department, Hleb Kanevskyi, in the 2024 state budget, up to UAH 30 billion is provided for state guarantees under contracts aimed at increasing the state’s defense capability and security.
“State guarantees are an additional financial instrument for the purchase of military equipment for the Armed Forces with a long production cycle. With the help of such guarantees, the Ministry of Defense scales the capabilities of the domestic defense industry,” added Kanevsky.
Contracts under state guarantees are a separate direction of defense procurement reform and provide for the provision of new conditions for partnership with business, which is critically important for meeting the needs of the Armed Forces, the ministry notes.
We will remind:
Ministry of Defense for 10 months of 2024 concluded contracts for robotic complexes of Ukrainian production in the amount of 300 million hryvnias.