Defense procurement in 2019 will amount to 25 billion.

Гособоронзаказ в 2019 году составит 25 миллиардов, - СМИ

It is 19% higher in comparison with parameters of order in 2018, which amounted to 21 billion.

The government of Ukraine at a meeting on Wednesday, February 13, approved the state defense order for the year 2019. As transfers the Internet edition of the Chronicle.info, on it informs Agency Interfax-Ukraine, citing a source in the defence sector.

“Today the government approved the state defense order for the year 2019, the parameters are correlated with the forecast”, – said the Agency interlocutor.

According to the announced in December 2018 the forecast of the Ministry of economic development and trade, the volume of the state defense order for the year 2019 may be of the order of 25 billion UAH. It is 19% higher in comparison with parameters of order in 2018, which, according to the Agency amounted to 21 billion.

As the press service of the Ministry, the Cabinet today approved amendments to the procedure for the formation of prices for products of the military-industrial complex with the aim of improving the current model of price formation for products, works and services for defense purposes in the case where the selection of artists and suppliers is carried out without the use of competitive procedures.

According to the report, the decision konkretisiert the composition of the expenses included in the calculation items for the products and services for defense purposes in the formation of prices. Thus, in particular, the document provides for the inclusion in the composition of direct operating costs costs for purchase of intermediate products and components, auxiliary and other expenses. The costs associated with performing research works, repair and modernization of military and special equipment, and include expenses for social insurance and other expenses that are not reflected in these expenditures. In addition, the salary costs include salary costs of employees who are not included directly in the staff of the company, and perform their work under civil law agreement.

“The decision creates conditions to establish reasonable prices for defense products with prevention in unreasonable costs for the enterprises-executors of state defense order, which will enhance their efficiency”, – stated in the message.

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