Dmytro Klimenkov: The Ministry of Defence has signed its first contracts with a private manufacturer under state guarantees, totaling UAH 4.4 billion

The Ministry of Defence of Ukraine is expanding financing instruments for procurement to equip the Armed Forces of Ukraine with modern and cutting-edge military equipment. In the framework of this policy, the first contracts under state guarantees have been signed with a Ukrainian private company. The agreements outline that the manufacturer will secure loan funds to fulfill the contract, with the state providing corresponding guarantees for loan repayment from the state budget.

“The total value of the first contracts is UAH 4.4 billion. The intention is to produce and deliver 100 specialized armored combat vehicles and 100 armored evacuation vehicles. These contracts mark the beginning of a new chapter in the collaboration between the Ministry of Defence and the private sector. The signing of contracts backed by state guarantees sends an important signal to the business community: The state is ready to support responsible manufacturers who are able to provide the Armed Forces with modern solutions and quality products,” emphasized Dmytro Klimenkov, Deputy Minister of Defence of Ukraine.

For the sake of security, the details of the contracts remain undisclosed. The contracts were signed as part of a program aimed at enhancing the nation's security and defense capabilities.

The Deputy Minister also expressed gratitude to his colleagues from the Cabinet of Ministers, particularly the Ministry of Finance, as well as to Members of Parliament for their support in expanding state guarantees for contracts with private manufacturers in the domestic defense industry.

For his part, Glib Kanevskyi, Director of the Procurement Policy Department at the Ministry of Defence, highlighted that the 2024 state budget allocates up to UAH 30 billion for state guarantees on contracts aimed at enhancing the nation's security and defense capabilities.

“State guarantees are an additional financial instrument for procuring military equipment, which has a long production cycle, for the needs of the Armed Forces of Ukraine. With these guarantees, the Ministry of Defence is scaling the capabilities of the domestic defense industry,” added Glib Kanevskyi.

This step is a distinct aspect of defense procurement reform, aimed at creating new conditions for partnership with the private sector, which is critical to meeting the needs of the Armed Forces of Ukraine in the context of countering the aggressor.