In the current conditions, the state should maximize the capacity of domestic producers, and only then buy imports. This was stated by Vladyslav Belbas, director general of Ukrainian Armor LLC.
According to him, in a war of this intensity, the consumption of armored vehicles, shells and other military products is higher than domestic production can provide, so imports are necessary.
“While we are developing and scaling up domestic production, we are forced to buy equipment and weapons. However, these purchases should take into account the capabilities of our defense industry. First of all, the domestic manufacturer must be fully contracted and financed. The rest of the necessary stuff is purchased through imports. This should be the philosophy. Then we will get the result when the domestic economy works and the army receives more weapons and equipment than in the case of external purchases alone,” Belbas said.
He also noted that there are a number of problems, such as the lack of funding, including loans, for defense companies, the bureaucratic complexity of the procedure for testing and putting new models of equipment into service, and the complicated procedure for booking defense employees, which remain serious constraints on the development of the domestic market.
At the same time, the head of Ukrainian Armor positively assesses the progress towards long-term contracting. According to him, the process of signing three-year contracts with domestic manufacturers has begun.
“Such contracts have been signed, but these contracts do not yet provide for financing. Why do we need three-year contracts? First of all, it allows the manufacturer to book production capacity for the next period and develop in a planned manner. The problem with financing these contracts has not yet been resolved, but we still see positive developments in this matter,” said Belbas.
In his opinion, the transition to three-year contracts will yield results in the short term by increasing the supply of domestically produced weapons and military equipment.
