Cabinet allows to increase profitability of ammunition production to 25%

The Cabinet of Ministers has allowed to increase the profitability of ammunition production to 25%.

Prime Minister Denys Shmyhal announced this on his Telegram channel, the Ukrainian News agency reports.

"We are scaling up a successful case with drones for the production of ammunition. Over the past two years, we have significantly increased the production of our own weapons. Among the most successful cases is a revolution in the field of production of various types of drones. One of the success factors was the involvement of private manufacturers. We have set a rate of profitability for them at 25%, and as a result, the production of drones in our country increased 100 times over the year. Today, the government approved a resolution that establishes the same level of profitability for domestic ammunition manufacturers," he said.

Shmyhal noted that such a government decision will allow manufacturers to expand and modernize their lines.

"We also expect to see new companies and new investments," he added.

In turn, the representative of the Cabinet of Ministers in the Verkhovna Rada, Taras Melnychuk, reported on his Telegram channel that the government has made changes to the Procedure for the implementation of the experimental project on the production, procurement and supply of ammunition.

In particular, the procedure was 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 of no more than 25% of the production cost of such goods; providing the opportunity in certain cases to accept manufactured ammunition without involving the representative offices of state customers in the field of defense.

As reported by the Ukrainian News agency, in April U.S. Secretary of State Antony Blinken said that the countries - members of the North Atlantic Treaty Organization (NATO) plan to redouble their efforts to find the resources that Ukraine needs to resist the armed aggression of the russian federation, in particular, for Ukraine, they will look for air defense equipment, artillery systems and ammunition.