Ukraine’s National Security and Defense Council (NSDC) has approved the main indicators of the public defense procurement order for 2020, 2021 and 2022.
According to the NSDC press service, in 2020, spending of UAH 25.848 billion for implementation of the public defense procurement order is planned. Fourteen state customers will take part in fulfilling the state order.
“The public defense procurement order provides for financing activities to develop the production capacities of the defense industry complex for a total of UAH 2.53 billion (9.8% of the total public defense procurement order). Of these, UAH 1.7 billion will be allocated for implementation of research and development,” the post said.
The defense spending order takes into account the development and procurement of the most important missile technology projects.
According to preliminary calculations, 90% of state defense contracts will be carried out by Ukrainian suppliers, which implies the support of the domestic defense industry.
In addition, the NSDC addressed issues directly related to the implementation of the public defense procurement order and the technical support of the security and defense forces. In particular, they discussed the need for regulatory support for the defense industry, including the development of a strategy for the defense industry of Ukraine and related legislation.
The Cabinet of Ministers was also tasked with submitting draft laws to parliament for the creation of favorable conditions for attracting foreign investment in the defense industry, financial rehabilitation and support for enterprises.
“The government was also instructed to ensure full funding, avoiding the reduction of the corresponding state budget expenditures or redistribution to other needs, and to make changes to a number of state targeted programs in the defense industry sector in terms of extending the deadline for their implementation. The decision also contains instructions to other ministries and departments and government customers for defense orders,” the NSDC said.
In total, in 2020 the financial resource for defense and security was increased to UAH 245.8 billion, which is UAH 30 billion more than in 2019. An additional financial resource of UAH 10 billion was also allocated under state guarantees for the implementation of programs related to improving defense capability and security.
