“Making defense procurement stable and predictable”: Denys Shmyhal on long-term weapons contracts
The Cabinet of Ministers of Ukraine has introduced long-term contracts for the production of weapons from the “Weapons of Victory” list. The decision was made in implementation of an order from the Headquarters of the Supreme Commander-in-Chief and following a submission by the Ministry of Defense of Ukraine.
This was reported by Ukraine’s Minister of Defense, Denys Shmyhal.
The government is transitioning to a stable and predictable model of defense procurement, under which contracts for military equipment will be concluded for the entire production cycle — from development and serial production to maintenance and repair.
The state is also forming medium-term procurement volumes and linking advance payment terms to specific stages of work performance. This is intended to ensure steady financing and uninterrupted delivery of weapons to combat units.
The Cabinet of Ministers launched the “Weapons of Victory” program at the end of 2024. It provides for guaranteed state contracts for 3, 5, or 10 years for Ukrainian defense industry manufacturers that meet clearly defined criteria.
Among the key requirements for manufacturers are:
- localization of production exceeding 50% of the unit cost of all components;
- codification of weapons samples;
- the presence of a long-term military need for this product;
- serial production by Ukrainian defense industry enterprises.
The Ministry of Defense emphasizes that such a model will make it possible to accelerate and scale up production, guarantee uninterrupted delivery of equipment to the front line, and create a predictable development outlook for Ukraine’s defense industry for years to come.