The logistical needs of the Armed Forces of Ukraine should be provided by Ukrainian manufacturers, Director General of SOE State Logistics Operator Arsen Zhumadilov said.

"We are talking about the Ukrainian business, which covers these needs to a large extent. And I want to say that my personal position and, in general, our entire organization is aimed at ensuring that it is Ukrainian manufacturers who supply for the needs of the Armed Forces of Ukraine," he said at a press conference at the Interfax-Ukraine agency on Tuesday.

According to him, "our position is as follows: if there are Ukrainian producers who are able to produce, we will build our purchasing strategies so that it is Ukrainian producers who win."

At the same time, he noted, "they should really win in fair and competitive bidding."

Zhumadilov said that "the structural unit of the Ministry of Defense, which should develop commodity markets not only through procurement, but also through the introduction of new positions that should be provided by the Armed Forces, has not worked very effectively in recent years, now it is being rebooted. And we expect that this process will really move, in fact, from the dead point at which it has been for the last two years."

The head of the State Logistics Operator noted that the agency intends to use the Prozorro system in procurement. "In particular, with regard to transparency, with regard to the use of the electronic system and the relevant procedures available in this system, we definitely adhere to this. There has recently been some resonance caused by the fact that there was an unfortunate wording in our letters, which was perceived as such that we are abandoning Prozorro. But we have voiced it," he said.

Zhumadilov supported the practice of advancing funds for the purchase. "Due to the fact that a fairly significant period of time passes from the moment of signing the contract to the moment of payment, and you have to invest funds … Accordingly, this cash gap is quite significant, not all manufacturers are able to close it at the expense of their own liquidity. Therefore, we will advance on the basis and in a way that is consistent with, which agrees with the Ministry of Defense," he said.

At the same time, he noted that "it is important that overdue accounts receivable are not formed, so that the risks of non-fulfillment of contracts are minimal for a refund."

The head of the State Logistics Operator recalled that "all funds that are allocated for advance payments go to a non-budgetary account in the State Treasury and these funds become available to the manufacturer when he provides documents confirming this or that performance, or certain expenses related to the execution of a state contract."

"We are moving to practice when procurement decisions are made by authorized persons, but they are made on the basis of standard operating procedures," Zhumadilov said.