Cabinet of Ministers transfers budget problems to weapons manufacturers - General Director of "Ukrainian Armor" Belbas
In conditions of shortage of funds, the government transfers budget problems to the shoulders of manufacturers and suppliers of weapons and military equipment.
Vladyslav Belbas, CEO of Ukrainian Armored Vehicles LLC, writes about this in the column "The Price of Ukrainian Weapons: How the Government Transfers Budgetary Problems to Manufacturers" for "Ukrainian Pravda", Censor.NET reports.
According to him, since January 2024, the regulatory framework has been changed, according to which both suppliers and manufacturers of weapons are deprived of the opportunity to receive a supplier's remuneration until the completion of contracts, which leads to the laundering of working capital of enterprises.
"In various cases, tens of millions of working capital of enterprises are frozen for 10-12 months, that is, in essence, enterprises lend interest-free to the state at the expense of funds that should be used for development," Belbas notes.
The general director of "Ukrainian Armor" also emphasizes that in the absence of other sources of funds for defense enterprises, this leads not only to the stagnation of existing large enterprises (primarily private ones), but also to the elimination of small manufacturers with innovative products.
"There is a situation in which if the enterprise does not have free working capital, it cannot fulfill the contract and eventually disrupts supplies to the Defense Forces," Belbas says.
