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Ukraine does not allocate funds for private defense firms, ex-MP explains why

2 February, 2024 Friday
21:10

Private companies are not allocated money to produce weapons and military equipment, which is included in the budget 

This was stated by Vitaliy Nemilostivyi, Chairman of the All-Ukrainian Association of Employers of Machine Builders of Ukraine, former MP, on the Espreso TV channel.

"Funds are not allocated to the private sector of the defense industry at all. People working in the Ministry state the following: "As soon as we allocate money to private companies, law enforcement officers come to us and everything goes back to where it started. Criminal cases are opened against us, officials. Although, there is no legal restriction on whether to allocate funds to state-owned or private companies. Therefore, the use of public funds is inefficient," he said.

The head of Ukroboronprom, the Ukrainian arms manufacturer, said that in 2023, arms production increased by 62%.

"He is telling the truth, but this is an increase in the state-owned part, which is subordinated to Ukroboronprom," the former MP said.

"No one says that out of this 62% growth, 90% was due to co-performers - private enterprises. The Minister talks about a 300% increase, and he is telling the truth. But all the rest of the growth is from the private sector. The Ministry allocates funds for production training only to the public sector, and this is the inefficiency. That is why we proposed and even prepared a draft resolution of the Ukrainian parliament to oblige the government to proportionally allocate funds to the private sector," Nemilostivyi added.

  • On February 1, the Ukrainian government supported a resolution introduced by Defense Minister Rustem Umerov that accelerates the launch and development of ammunition production in Ukraine.
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