The government changed the rules of defense procurement and allowed Ukrainian businesses to work profitably with the Ministry of Defense

Author:
Sofiia Telishevska
Date:

The Cabinet has fixed a mistake in procurement procedures that required businesses to work with the Ministry of Defense without profit.

This is reported by the Ministry of Defense.

In this way, Ukrainian business was equalized in rights with foreign business.

The Defense Minister Oleksiy Reznikov said that he considers "absurd and illegal" the demands of the State Audit Service to put the interests of foreign manufacturers ahead of Ukrainian ones and to deprive Ukrainian businesses of the right to profit.

"There is no logic in this, it directly contradicts the interests of the defense and the norms of the current legislation," he noted.

At the same time, the norm insisted on by the Ministry of Defense was removed from the governmentʼs decision, namely, a clear indication that such an order is valid for the entire period of the legal regime of martial law, i.e., it should be applied from February 24, 2022.

"Unfortunately, this position was not supported by representatives of other departments in the governmentʼs final decision, so the conflict persists," the Ministry of Defense reported.

  • In June 2023, it became known that Ukrainian enterprises that supplied goods for the Ministry of Defense and other state customers became victims of a bureaucratic trap. Adopted at the beginning of the Great War, the government decree forbade businesses fulfilling government orders to include profit in their calculations.
  • After a year of trading, the State Audit Service accused the business of causing losses to the state of UAH 2.5 billion. The Ministry of Defense said that the situation threatens stable supplies for the Armed Forces, and entrepreneurs — that this puts them on the edge of survival.