Defense companies must have reserve of funds, otherwise there will be contracts failure and AFU will have no weapons - NAUDI
Defense industry enterprises must have working capital for efficient operation and contract fulfillment.
This was stated by Deputy Chairman of the National Association of Defense Industry of Ukraine (NAUDI) Serhii Vysotskyi during a meeting of the working group on improving the investment climate in the defense industry, Censor.NET reports.
"We understand that there are very few countries left in the world that are full of ammunition and weapons in stock. These are China, Russia, they have less and less of these stocks. This is the DPRK, which supplies them to the aggressor country. The countries of the global south. All of our partners have released their stocks, both from specialty importers and from companies that manufacture weapons using components of foreign origin: explosives, elements for drones and electronic warfare, microelectronics, etc." he explained.
According to Vysotskyi, Ukrainian companies that cooperate in these huge transnational cycles need to have working capital to invest in continued production.
The NAUDI deputy chairman reminded of sabotage in some European countries that supply Ukraine with certain components.
"We need a reserve of funds to change suppliers and prepare our component base for new conditions. Our electronic warfare devices and drones are updated every 3 months, so we need to look for suppliers for these components every 3 months. This requires working capital. If the supplier's remuneration is paid unknowingly, if the company is deprived of the opportunity to use these meager percentages of profit that we have in the market to manage these funds in order to fulfill its main function - to ensure the survival of the nation of our state. If the company is deprived of this, we will simply see a technological lag, the failure of contracts, all these processes that will negatively affect the industry and lead to the bankruptcy of the enterprise. As a result, our Armed Forces and Defense Forces will not have ammunition, drones and electronic warfare systems. We are talking about the survival of our state," he summarized.
