«League of Defense Companies of Ukraine» begins to change the rules of the game in the production of military equipment. And change for the better. This is how it is possible to assess the results of the meeting of the Interagency Commission on the issues of the defense-industrial complex, which took place on June 22, under the chairmanship of Oleh Gladkovsky, First Deputy Secretary of the National Security and Defense Council. Decisions were made that would substantially improve the state of affairs when pricing products manufactured under state defense orders.

Participation in the event was attended by representatives of the National Security and Defense Council, the Ministry of Defense, the General Staff of the Armed Forces of Ukraine, DK “Ukroboronprom”, state enterprises, the General Prosecutor’s Office of Ukraine, the Foreign Intelligence Service, and the “League of Defense Enterprises” – the leadership of the scientific and production association “Practice” and information and consulting company Defense Express.

In fact, the interagency commission considered eight issues, but the first of these was initiated by letters from the Defense Forces League to the Prime Minister of Ukraine Volodymyr Groysman and the first deputy secretary of the National Security and Defense Council, head of the commission on defense issues, Oleg Gladkovsky.

Reference:

By the Resolution of the Cabinet of Ministers of Ukraine dated August 8, 2016, No. 517 “On Approval of the Procedure for the Formulation of Prices for Products, Works, and Defensive Supplies in the Event that the Selection of Artists for the Supply (Purchase) of such Products, Works, and Services is carried out without the Use of Competitive Procedures”. In this case, the profit in the price structure can not exceed 5% of the expenses of the business entity for the purchase of component products (semi-finished products), works (services) from other economic entities, as well as 30% of the remaining costs in the production cost of products (works, services ) “. In reality, the share of component parts (semi-finished products) in the latest models of anti-personnel vehicles is 70% on average, while the remaining costs are only 30%, the estimated level of return is only 10.1%, and real – even less given the inflation rate.

Despite the fact that the established profit level already completely demoralizes private producers of defense products and does not create anything else as a basis for degradation and decline, the Minister of Defense of Ukraine on the registration number 2591 / u / 2 dated October 18, 2016 was approved “Methodical recommendations for unified approaches during the application of certain provisions, determined by the decision of the Cabinet of Ministers of Ukraine # 517 dated August 08, 2016”, with which the established levels of profit were further reduced!

The methodological recommendations allow the permissible level of profit accrued on the cost of purchasing the completing products (semi-finished products), works (services) from other business entities, reduced by five times – from 5% to 1%, and the level of profit for the rest of the expenses – reduced from 30% to 20%. Thus, in accordance with the guidelines established by the Guidelines, the calculated level of profit of the DOS executor is reduced by almost two-fold to 5.4-8%. That is less than even the planned annual inflation rate in Ukraine ..

Oleg Vysotsky, Chairman of the Private Practice Management Board, outlined the main issues and proposals from private enterprises within the League to the members of the interdepartmental commission. Although, in fact, they are similar for state-owned factories and companies that are also involved in the execution of a state defense order for the needs of the Ukrainian army.

“We are delighted that DOS has contracted to supply our new armored vehicles to the Ministry of Defense within the framework of DOS, the profitability that we are allowed to have under the current conditions is less than 8 percent.” The contract is a year. We signed it late. inflation, and the advance was given to us such that we need to take a loan at 15-17 percent, then for us this contract will be purely fashionable. So, we will do it, because it is a matter of honor. But no new samples can be in the future. and speak, because they will not develop and produce them for anything. Also in their own In a letter to the Prime Minister and the National Security Council, we stressed that the standards on which the officials during the formation of prices for defense products taken from the Soviet past. They need to change the realities of the present day.

Also, I do not see in our country a system in which something is taken into account in the structure of the price of products, and something is ignored, and on subjective time grounds. Therefore, the League was asked:

First Ensure that the Cabinet of Ministers decree on the receipt of profits for public and private producers at significant rates of 5 and 30 percent; this will be enough for us to develop – taking into account the real needs of the state’s productions and capabilities.

The second question is more serious. It is necessary to create a working group of industrialists, representatives of the Ministry of Economy and the Ministry of Defense, in order to formulate common approaches to the formation of the price structure and to make a cost calculation for the development and production of defense products. Because new products from the enterprises of the League – and this is armored vehicles, and unmanned systems, and radar systems, and complexes.

Agency «Defense Express» information

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