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Cabinet allows to increase order price by 20% in concluded state contracts for purchase of UAVs and EW equipment

The Cabinet of Ministers allowed to increase the order price by 20% in concluded state contracts for the purchase of unmanned systems and electronic warfare (EW) equipment, while the manufacturer's profit should not exceed 25%. This was announced by the Minister for Strategic Industries Herman Smetanin on the Telegram channel, Ukrainian News Agency reports.

"The government allowed to make changes to concluded state contracts for the purchase of unmanned systems and EW equipment... During the execution of a state contract, it became possible to make changes to the product's performance characteristics. These changes must be confirmed by appropriate justifications. Accordingly, the price of the state contract can also be changed based on these changes. This can be done once, exclusively at the request of the state customer and with the mandatory provision of an updated calculation," he said.

Smetanin noted that the price increase is allowed by no more than 20% of the initial price, and the manufacturer's profit should not exceed the established 25%. According to him, this will allow for the prompt improvement or improvement of the product in accordance with the current needs of the front.

"Manufacturers and state customers now have the right and the resources to make changes during the execution of the state contract, and the military will receive a product that is as close as possible to their needs," the minister noted.

As Ukrainian News Agency earlier reported, in June, President Volodymyr Zelenskyy announced an increase in the production of Ukrainian drones that can intercept russian attack drones of the Shahed type.

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In June, the Verkhovna Rada exempted from taxation import duties and value-added tax the import of fiber optics for the production of drones.

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