Russia offers full-fledged military and technical cooperation
March 16, 2017
March 19, 2017
$33 million Saving by UkrOboronProm

UkrOboronProm (UOP), an organization gathering Ukrainian defence companies under one roof, announced that it has saved a total of $ 33 million since about October 2014. UOP said that it has set up an electronic procurement system for this purpose, saving time and reducing the possibility of corruption.

According to UOP's press release, until 2014, the defence agencies in the country were in a collapse. Production lines were rusting, workers could not get their salaries. Due to increasing corruption, there was no coordination among institutions.

Due to the fact that the country was in war conditions, immediate and precise measures were taken in the field of defence; the policy of cost-effective acquisition from reliable, responsible suppliers was adopted.

Electronic bidding was established in this framework. In the first three months following October 2014, 830 companies registered in the system; 7 thousand 935 suppliers in 2015, 17 thousand 297 suppliers in 2016 were registered. When the acquisition process completed in two or three times shorter than before, and as corruption declined, UOP's savings amounted to UAH 892 million (about $ 33 million).

As of today, UOP has announced 21 guidelines in the field of defence. In Ukraine, 8 thousand 500 organizations are cooperating with UOP. 65-70 percent of them are SMEs. The purchase process takes five days and three basic documents are requested. The requested documents ensure that the rules are applied to everyone and that the industrial capacity of the companies is constantly updated while shell companies gets eliminated.

According to the bulletin, as a result of the clearness of the principles, an atmosphere of cooperation was created between the institutions. At the beginning of the war, 55 percent of military equipment was produced in Ukraine, 10 percent came from western countries and 35 percent from Russia. Since mid-2014, import from Russia stopped completely. As a result, there has been a rearrangement of percentage; 70 percent of the procurement was Ukraine-origined while the remaining 30 percent was of western countries. By 2016, there has been 400 companies, producing a thousand and 700 parts, assemblies and components throughout the country. The country produces 87 percent of their armored land vehicles with parts supplied from within the country. 13 percent of the parts are imported from the west.

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