The level of profitability of ammunition producers will be up to 25% of their cost - the Cabinet of Ministers

The Cabinet of Ministers has approved a resolution that sets a profit margin of up to 25% of the cost of ammunition for domestic producers. This should allow manufacturers to expand and modernize their production lines. This was stated by Prime Minister Denys Shmyhal during a government meeting, UNN reports .

Over the past two years, we have significantly increased the production of our own weapons. Among the most successful cases is the revolution in the production of various types of drones. One of the success factors was the involvement of private manufacturers. We set a profit margin of 25% for them, and as a result, our drone production increased 100 times in a year. Now we are scaling up this successful case with drones to produce ammunition. We are approving a resolution that sets a profit margin of up to 25% of their cost for domestic ammunition manufacturers,

He added that this should allow manufacturers to expand and modernize their lines.

Addendum

According to Taras Melnychuk, the government's representative in the Verkhovna Rada, on Telegram, the relevant changes were made to the Procedure for the implementation of a pilot project on the production, purchase and supply of ammunition.

The Procedure has been supplemented with new provisions regarding:

• establishing the level of profitability of executors of state contracts (agreements) for the manufacture and supply of privately owned ammunition as part of the price, at a level not exceeding 25 percent of the production cost of such goods;

• providing an opportunity in some cases to accept manufactured ammunition without involving the offices of state defense customers.

Recall

In 2024, Ukraine caught up with Russia in terms of production of kamikaze drones similar to Shahed-131 and Shahed-136, as well as in the production of other attack drones.