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The decrease in the hryvnia is affected by the manufacturers of weapons – Ukrainian armored vehicles

Photo: Ukrainian armored vehicles

Businesses are faced with the fact that the estimated cost under the contract differs significantly from the real one.

Arms manufacturers in Ukraine are facing financial problems amid a sharp drop in the hryvnia against the dollar and euro. The general director of the Ukrainian Armored Vehicles company, Vladislav Belbas, wrote about this in a column for Ukrainskaya Pravda, published the previous day.

“Due to the sharp increase in the exchange rate of foreign currency, businesses are faced with the fact that the estimated cost under the contract differs significantly from the real one. The cost of the products under the contract is calculated several months ago at the same rate, let’s say 42 hryvnias per euro, currently the euro is 46 hryvnias, tens of millions of capital that should be used for development are frozen,” said the general director of Ukrainian Armored Vehicles, who manufactures armored vehicles, mortars and ammunition.

Belbas also points to a lack of long-term planning among arms manufacturers.

“The subject of long-term contracts for the defense industry is just PR, for now, there is no sign that someone will launch this mechanism to make changes in laws and regulations that these changes have not been discussed yet, he stated.

Earlier, Vladislav Belbas spoke about the problems of cooperation with the government. In his opinion, they create “a huge burden on defense enterprises and can have extremely negative consequences.”

Let us remind you that the Ukrainian armored vehicles named the conditions for a significant increase in production. For some types of weapons, Ukrainian production is already comparable to Western production.


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Source: korrespondent

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