Due to the war, some foreign companies demand full prepayment under arms supply contracts - Ukrainian Armor CEO
Kyiv • UNN
Because of the war in Ukraine, some foreign companies are demanding full prepayment for contracts to supply weapons and military equipment to the Ukrainian army.
Some foreign companies are demanding full prepayment under contracts for the supply of weapons and military equipment for the Ukrainian army due to martial law in Ukraine. This was reported by Vladyslav Balbas, General Director of Ukrainian Armor LLC, in response to a request from UNN.
Details
According to him, the possibility of shipping military goods with deferred payment depends on the export and currency control legislation of the supplier country, as well as the companies' own policies.
"Under the conditions of martial law in Ukraine, some foreign suppliers of weapons and military equipment demand full payment for their products before they are physically delivered to Ukraine," said Balbas.
In particular, suppliers from countries that do not have unanimous support for Ukraine demand prepayment. For example, countries located on the Balkan Peninsula.
At the same time, he noted that under most of Ukrainian Armor's contracts with government customers, final payments are made after the goods are delivered. In these circumstances, the company uses its own working capital to pay suppliers of weapons, military equipment and components for the production of its own products, waiting for final payment from government customers.
Recall
Experts in their comments to UNN previously reportedthat the Ministry of Defense of Ukraine at the beginning of a full-scale war, out of critical necessity, signed contracts for the purchase of ammunition with all companies that claimed to be able to supply shells. In addition, some countries did not want to sign contracts with the MoD for the sale of ammunition because they feared that our country would lose the war and no one would pay for it.
Add
The absolute state armament of the Ukrainian Armed Forces before the full-scale invasion was, to varying degrees , a Soviet legacy. Therefore, the weapons themselves, spare parts and ammunition are produced to a greater extent on the territory of former Warsaw Pact states.
Some of the states that have the ammunition Ukraine needs are hostile, such as Russia and Belarus. Ukraine received all possible assistance from other post-socialist countries that joined the EU (Poland, the Czech Republic, etc.).
However, there remains a group of Balkan states that, despite the European integration processes in some of them and support for Ukraine, are still strongly influenced by the Russian Federation. In these states, friends of Russia are still in power and have a significant impact on the policies of their countries. In practice, this is manifested in the fact that with the increase in support for Ukraine, they refuse to directly supply us with weapons and ammunition. Therefore, Ukraine is forced to purchase ammunition from these countries through a number of intermediaries.
