The Ministry of Defense of Ukraine reports on the successful completion of the next stage of the experimental project for the production, procurement, and supply of ammunition. According to the agency, significant progress has been made in increasing the capabilities of domestic producers within the framework of the project. In particular, 76 new entities have been included in the Register of Participants and Contractors of State Contracts, which have for the first time acquired the status of producers, thereby enhancing competition and expanding the range of products.
Thanks to the simplification of procedures, the duration of permitting processes has been reduced to a few days, as the application of the requirements of 19 existing regulatory legal acts has been temporarily suspended. This has expedited the development and supply: 370 new samples of ammunition have been codified and allowed for use in the Armed Forces of Ukraine, 250 of which are intended for unmanned systems.
'The most important results are those we see on the battlefield. The share of mortar and artillery shells produced in Ukraine has increased by 50%. This indicates a successful establishment of closed production cycles,' said Defense Minister Denis Shmyhal.
New types of weaponry
In October, the Ministry of Defense allowed the operation of more than a hundred new types of domestically produced weapons and military equipment in the Defense Forces of Ukraine. This includes, in particular, unmanned aerial complexes of various purposes, EW systems, and new large-caliber artillery shells. We already have a technical solution from domestic manufacturers that will enhance the striking capabilities of our aviation. The list of weapon innovations in October also includes optical devices of various purposes, automotive technology, ground robotic complexes, simulators, special armored vehicles, and more.
Preferential lending for defense industry producers
In one year of the preferential lending program, Ukrainian defense industry producers have received 80 loans totaling nearly UAH 5 billion. Currently, 16 applications from defense enterprises for almost UAH 700 million have been approved for issuance. Additionally, 52 applications for more than UAH 4 billion are at various stages of consideration.
Private sector producers lacking working capital for improving and scaling up production capacities can obtain up to UAH 100 million for working capital for a term of up to 3 years and up to UAH 500 million for investment projects for a term of up to 5 years. The interest rate for defense industry enterprises is 5%, with the rest compensated by the state. Loan funds can be directed towards the modernization of production, the purchase of new equipment and components, the expansion of operational activities, as well as the support of the development of new types of weapons and military equipment and their launch into mass production.
To access affordable credit, the producer must contact one of the partner banks of the program. Currently, five banks that meet security criteria are participating in the program.
The Ukrainian Ministry of Defense is actively working on the development of the domestic military-industrial complex and ensuring it is equipped with modern weapons and technology. The successful completion of the ammunition production project and the implementation of new types of weaponry indicate positive trends in this direction.