Defense Procurement Agency contracts 102 domestic suppliers, half of them make drones – Defense Ministry
Seventy percent of the contracts concluded by the Defense Procurement Agency engage domestic manufacturers, Head of the Procurement Policy Department of the Defense Ministry of Ukraine Hlib Kanevsky said, adding that the agency has contracted 102 domestic suppliers, 45% of which are drone manufacturers.
"As for the number of contracts, unfortunately, I cannot give detailed information. However, I can brief you on the percentage. The Defense Procurement Agency has concluded 70% of contracts with domestic manufacturers and 30% – with importers," he said in an exclusive interview with the Interfax-Ukraine News Agency.
According to the official, the Agency purchases mainly armored vehicles, mortars, self-propelled artillery systems and other things from domestic manufacturers, and foreign companies provide it with the equipment which has never been produced in Ukraine, even in Soviet times, or with the technologies Ukraine has lost during its independence, particularly, air defense capabilities, interceptors, and ammunition. Particular attention is paid to NATO-standard 155mm munitions, Kanevsky said.
"In general, we have concluded contracts with 102 domestic suppliers or manufacturers, 45% of which are drone manufacturers. These are either manufacturers or suppliers who make their goods of foreign components in the territory of Ukraine and sell them to the Defense Ministry through the Defense Procurement Agency and supply them to the Armed Forces of Ukraine," he said.
Speaking about the Rear Logistics Operator, the official said it has slightly more contracts with Ukrainian manufacturers since the production capacities of the light and food industries are better developed in Ukraine.
"So, we are speaking about 180 Ukrainian suppliers, 110 of whom provide clothes, 45 – food, and more than 25 companies – fuel and lubricants," he said.
Kanevsky also noted that Ukrainian manufacturers have a significant advantage over foreign manufacturers in rear purchases. Speaking about competition with imported suppliers, he said there are only a few of them in the procurement of the Rear Logistics Operator.
"For example, import suppliers can be Ukrainian entrepreneurs who are trying to find goods outside of Ukraine that fit certain technical specifications, bring the goods to Ukraine and sell them. But the Central Quality Control Department will still carry out inspections before allowing or not allowing the goods into the warehouses of the Armed Forces of Ukraine. That is, in fact, low-quality imports now have no chance to massively get into the warehouses of the Armed Forces of Ukraine," he said.
The official also said international companies that want to work with the AFU's rear, one way or another should think about the localization of their production, because the Defense Ministry cannot buy for the military "any goods that, for example, are sold on online marketplaces or supermarkets." He explained that the AFU have specific technical requirements for all groups of logistics goods. In addition, after the Rear Logistics Operator procures the goods, another structure of the Defense Ministry checks the quality, and only after that the goods are already going to the troops.
"Therefore, when an international foreign company wants, and there are such companies, to work with the Armed Forces of Ukraine, with the Ministry of Defense, they must meet all these standards, that is, to master them, and it is easier to do it all on the territory of Ukraine, localizing their production in line with these requirements. Perhaps in cooperation with other local manufacturers," he said.