Long-term contracts with arms manufacturers were never funded, Vladislav Belbas said.
The Cabinet of Ministers transferred the budget problems to the arms manufacturers. The general director of the Ukrainian Armored Vehicles company, Vladislav Belbas, wrote about this in a column for Ukrainskaya Pravda, published on Friday, August 30.
According to him, the long-term (three-year) contracts, which have been discussed a lot at all levels and are really needed by the producers, have not been financed until now.
“In fact, these documents in the current conditions are no more than a piece of paper, because they were all completed without accepting financial obligations. According to the current law, financial obligations cannot be taken within two or three years, but only within the current budget,” Belbas pointed out.
He also called the impossibility of receiving supply remuneration or manufacturer income until the contract is fully completed as a “time bomb.”
“In the absence of other sources of funds for defense enterprises, since there is only one customer – the state, this leads not only to the stagnation of existing large enterprises (mainly private ones), but as well as eliminating small manufacturers with innovative products,” said the general director of Ukrainian Armored Vehicles.
According to him, a similar situation has developed in supplies, when businesses receive their reward only when they send the full volume under the contract.
“To understand, such contracts are designed for 7-12 months, and deliveries are carried out in batches That is, in fact, the business operates without operating funds As a result, a situation is arise when, by withdrawing the working capital of businesses – underfinancing them – the state, at the expense of manufacturers or suppliers, pays for the lack of budget funds,” said Belbas.
In his opinion, all these problems create “a huge burden on defense enterprises and can have extremely negative consequences.”
“First, sooner or later, both state and private companies will not be able to guarantee the fulfillment of contracts, they will not have enough safety margin… Second, in the future, such a situation will certainly include a decrease in the quantity of imported products, and for manufacturers – a decrease in production volumes due to a lack of working capital, resulting in a decrease in budget revenues, loss of qualified specialists, lack of new jobs -development and development, “said Vladislav Belbas.
Let us remind you that the Ukrainian armored vehicles named the conditions for a significant increase in production. Currently, for some types of weapons, Ukrainian production is already comparable to Western production.
Earlier it was reported that Ukrainian armored vehicles significantly increased production during the mass war with the Russian Federation the company has dozens of sites across the country.
Source: korrespondent
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