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More drones for the front: DOT-Chain Defence introduces an advance payment mechanism to accelerate deliveries to the Armed Forces of Ukraine

Combat quadcopter with an open frame, front-facing camera, and communication antennas, symbolizing the launch of an advance payment program for drone manufacturers through the DOT-Chain system
The principle is straightforward: the higher the speed of fulfilling orders for the front, the larger the advance payment allocated to businesses

At the initiative of the Ministry of Defence, the Defence Procurement Agency DOT is launching an advance payment mechanism for manufacturers on the DOT-Chain Defence weapons marketplace: effective drone manufacturers will now receive advance payments. The goal is to provide the market with working capital to accelerate production and delivery of drones to combat units. 

The DOT-Chain Defence model currently operates on a post-payment basis, with payment made after the delivery of goods. Under the updated approach, manufacturers that consistently and rapidly fulfill orders may also receive a portion of the funds in advance.

How the new advance payment mechanism will accelerate the production of drones

The advance payment mechanism enables the scaling up of production, particularly amid increased demand from military units, which could otherwise impact order fulfillment timelines. The principle is straightforward: the faster orders for the front are fulfilled, the larger the advance payment a company receives.

“We see real demand from units in DOT-Chain Defence and the speed at which manufacturers are meeting it. However, some companies are constrained not by technology but by working capital. That is why we are introducing advance payments. They are linked to order volumes in prior periods and to the actual delivery speed: the faster you fulfill orders, the larger the advance payment you receive. This provides additional incentives to produce and deliver faster,” said Arsen Zhumadilov, Director of the Defence Procurement Agency DOT.

How the advance payment mechanism operates

Manufacturers are eligible for advance payments if they:

  • have maintained continuous presence in the DOT-Chain Defence system for a minimum of three months;
  • have no overdue liabilities to the Agency.

The level of advance payment is determined by the actual speed of order fulfillment over the preceding three months:

  • up to 70% advance payment if the average delivery time does not exceed 30 calendar days;
  • up to 30% advance payment if the delivery time is longer.

Calculations are based on orders actually placed in the system.

Advance payments are provided for a period of 60 days. In the event of non-fulfillment of obligations, unused funds must be returned, and a fee applies for the use of funds in case of delayed repayment.

Detailed procedures for the advance payment mechanism are available on the official website of the Defence Procurement Agency DOT.

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