State defense order fulfilled by 99.5% as of Dec 26 – Minister Taran

Photo from Ukroboronprom

Photo from Ukroboronprom

Ukrainian Defense Minister Andriy Taran says the ministry has fulfilled this year's state defense order by 99.5% as of December 26, 2020.

In particular, out of UAH 22.005 billion, or US$.775.6 million, earmarked to this end, UAH 21.898 billion, or US$771.9 million, in state contracts were concluded, the ministry's press service said on its website on December 28.

Read also Ukroboronprom transfers repaired MiG-29 jet fighter to Air Forces (Photos) Procurements of new and upgraded weapons, military equipment and special-purpose products supplied to the troops also increased over the period under review.

In addition, despite the COVID-19-related restriction in operation of the defense industry, the ministry managed to ensure supplies of weapons and military equipment at the level of 2019, while in terms of certain indicators (supply of ammunition, armored vehicles, and digital communications) even exceed the figures reported last year.

In total, 10,500 units of military equipment and 3.2 million pieces of ammunition were delivered to the troops. The production and supply of weapons and military equipment worth UAH 6.5 billion (US$229.1 million) were financed in advance.

"The main resources next year should be planned for procurements of new weapons, rather than for repairs of obsolete models. The vicious practice when the state defense order and procurement are used only as a way to meet the Ukrainian Armed Forces' current needs should be changed. [We] must create conditions and use the state defense order as a tool for the strategic development of the Armed Forces of Ukraine," the minister stressed.

To this end, approaches to the distribution and use of funds for the procurement of new (upgraded) types of weapons and military equipment will be revised.

"The relevant departments of the Defense Ministry are also tasked to implement the provisions of the law of Ukraine on defense procurement within the shortest time possible. In 2021, we must switch to new procedures for the procurement of goods, works and services for defense purposes. In this regard, we are developing a new method of procurement at the price of a prototype, which will take into account its life cycle," he added.

Background

  • Some UAH 25.848 billion (US$911.1 million), which is 16% more than in 2019, was to be allocated for financing the state defense order in 2020.
  • On March 2, 2020, the then CEO of state-run Ukroboronprom Aivaras Abromavičius said that Ukraine's state defense order in 2021 would hit a record high amount set at UAH 30 billion, or US$1.1 billion.
  • On November 12, 2020, Secretary of the National Security and Defense Council (NSDC) Oleksiy Danilov said Ukrainian ministries had failed to fulfill the state defense order for the current year.

Author: UNIAN

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