Simplified projectile production and defense procurement through Prozorro. The government approved new regulations

Author:
Liza Brovko
Date:

The government approved three resolutions that concern the Ukrainian defense-industrial complex, namely ammunition, drones, and defense procurement.

This was reported by the Prime Minister Denys Shmyhal.

The Cabinet of Ministers adopted a document on the deregulation of ammunition production. This extends the drone munitions pilot project to munitions of all types so that new businesses can get up and running quickly. The decree eliminates a number of bureaucratic processes and allows private companies in Ukraine to legally produce all ammunition.

At the same time, the Minister of Digital Transformation Mykhailo Fedorov added that the resolution refers not only to ammunition, but also to missiles.

"Deregulation works. We realized this with the production of ammunition for UAVs: in 6 months, we have 20+ new ammunition manufacturers and more than 20 ammunition approved for operation," he noted.

Another regulation concerns the pricing of drone production — from now on, drone manufacturers must clarify how they calculated prices if the profit margin exceeds 25%. This should eliminate the risks of overpayment, misuse of money in government procurement. After the recalculation, the state will give manufacturers the opportunity to either return the difference to the budget or supply drones.

In addition, defense purchases will now be made through a competitive procedure through the closed module of the Prozorro system. This will allow establishing transparent pricing and safeguards against information leakage.

In particular, we are talking about the purchase of mass-market UAVs of foreign manufacturers, such as Mavic, Autel and Matrice. As the Ministry of Statistics writes, during the year the number of suppliers of drones increased tenfold, and therefore the market became highly competitive. The new regulation will provide equal conditions for access to public contracts, and the state will be able to choose the supplier with the most favorable prices.