Page 28 - UKRRptApr24

During the meeting, Ukrainian and Dutch companies signed five documents regarding cooperation in the defense industry. The agreements concern cooperation in the field of innovation, including the joint development of autonomous systems, AI-based solutions, and other technological products, commented Deputy Minister of Strategic Industry Serhii Boev.
Czechia sends Ukraine its last Soviet Mi-24 helicopters. This is the third time Czechia has supplied Ukraine with helicopters. Prague sent four Mi-24 helicopters in July 2022 and then sent more in July 2023 without specifying the numbers and models.
UK company developing EW-proof drones for Ukraine. The British company Evolve Dynamics is focusing on developing drones for the Ukrainian military that are able to withstand electronic warfare, Reuters reported on March 28.
- Factories
In 2023, the enterprises of State Defense concern Ukroboronprom increased production by 100% in monetary terms and 1,000 times in terms of the number of produced units, having produced more than 600,000 weapons and pieces of equipment, said the general director of the concern Herman Smetanin. However, according to him, the needs at the front are higher still, so Ukraine is counting on increasing its own production.
The government is simultaneously preparing two new financial support mechanisms for Ukrainian arms manufacturers. Ukraine’s military-industrial complex currently consists of 500 defense companies, 80% of which are private. Before the full-scale war began, private companies occupied 20% of the market. In 2023, Ukrainian gunsmiths increased production by 200% to $3B. However, manufacturers lack working capital due to a scarcity of available funds, making it difficult to invest in development. To address this, the government has introduced the following two programs:
● For manufacturers already operating in the market, a mechanism for the state to guarantee loans for private manufacturers based on the current program of portfolio guarantees.
● For startups, the provision of loan interest rate compensation that is based on the current Affordable Loans 5–7–9% program.
The Ministry of Strategic Industries expects the resolution to be adopted by the end of the month. If such mechanisms are introduced for military industrial enterprises, the state-owned Oschadbank can start financing defense industry companies on new terms within four to seven weeks, providing tens of billions of hryvnias in financing for this market segment.
The EU is preparing to transfer its economy to military rails. The EC will propose ways to intensify the work of the European defense industry to respond more effectively to Ukraine’s war needs and future security challenges. This refers to proposals that EU countries can jointly buy more weapons from European companies and thus help them increase their production capacity. Among the proposals in the EC plan is to oblige manufacturers to give priority to orders from Europe over third countries during this European crisis period. The plan is expected to be accompanied by a small amount in the multi-annual EU budget of €1.5B, but this will create a legislative framework for more coordinated action in the EU. Creating a €100B EU special fund to finance defense projects is also expected. It is noted that
28 UKRAINE Country Report April 2024 www.intellinews.com