Zelenskyy approves settlement of profit accrual by enterprises that perform defense government orders

President Volodymyr Zelenskyy has signed a law on the inclusion of profits of enterprises working to meet the needs of security and defense in the price of delivered goods and services.

This is stated on the card of bill No. 10454, Ukrainian News Agency reports.

The law provides that:

• in the case of purchase of goods, works and services for security and defense needs under a non-competitive procedure or without a procurement procedure, the profit level cannot exceed the profit limit established by the government;
• for cases where the level of profit was not established by the government, the price should be determined in accordance with the proposal of the contractor, taking into account the profit of such contractor.

"The above norms apply to all state contracts on defense procurements concluded under a non-competitive procedure or without a procedure for the entire duration of martial law. That is, the law has a retrospective direction that will allow law enforcement agencies to close cases initiated earlier due to inconsistency in the regulatory field," the Ministry of Economy said in a statement on the adoption of the law.

In June 2023, the State Audit Service reported that domestic army suppliers could not put profits in costing.

At the same time, Oleksandr Sokolovskyi, member of the Presidium of the Federation of Employers of Ukraine, owner of Textile-Contact, said that the State Audit Service of Ukraine is trying to recover additional taxes from Ukrainian manufacturers and suppliers of military uniforms for the Armed Forces of Ukraine, accusing them of "causing damage to the state" due to profit on contracts with the Ministry of Defense.

Also in October 2023, the state Kyiv design bureau Luch repeatedly appealed to the government and the country's top political leadership due to the actions and conclusions of the State Audit Service of Ukraine regarding the inclusion of profits in the price of products.

As Ukrainian News Agency earlier reported, in July 2023, the Cabinet of Ministers settled the problem of calculating profits by light industry enterprises that perform state orders.

To request a correction, please send an email.