The Cabinet of Ministers has officially launched mass production of Ukrainian UAVs: Fedorov explains the historic decision

Ukraine has raised the share of profit on foreign components in drone production to 25%. This will attract more companies to the production of UAVs in Ukraine, i.e. to launch mass production of drones in the country.

The corresponding decision was taken by the Cabinet of Ministers at a meeting on March 24. As Deputy Prime Minister for Digital Transformation Mykhailo Fedorov noted, the decision is historic.

"The government has launched mass production of drones in Ukraine. It has adopted a truly historic resolution for victory, which will significantly accelerate the creation and supply of domestic drones to the frontline, and most importantly, create conditions for the rapid development of Ukrainian Mil-Tec business," said Fedorov.

The fact is that one of the formulas for calculating the purchase price of UAVs is as follows: production costs + profit percentage. Previously, the profit margin on foreign components was 1%, and on their own goods and services - 30%.

That is, the manufacturer lost the opportunity to sell drones to the state at an adequate price if they were made from foreign components. "Such regulation hindered the development of Ukrainian manufacturers, encouraging them to move abroad or manipulate documents," Fedorov said.

Therefore, the state raised the profit share to 25%. According to the deputy prime minister, this will allow UAV manufacturers to develop more actively, scale up, reinvest profits, and compete with foreign companies.

"Instead of spending months on unnecessary paperwork and bureaucratic work accelerated clearance of UAVs, their purchase and delivery to the front. It is important that the decree fundamentally changes the approach of the state to the miltec business itself," Fedorov noted.

The decision was also commented by the head of the Defense Ministry Oleksii Reznikov. According to him, such a decision makes it possible to technologically strengthen the defenders at the front. Also Reznikov reminded that in 2023 the Ministry of Defense increases the purchase of UAVs for the AFU and plans to spend about 20 billion UAH for this.

"The decree changes the approach to the outdated bureaucratic rules and will meet the conditions of the modern world. In fact, this is the next step in the development of the Ukrainian military-industrial complex," - noted in the Ministry of Defense.

Earlier, OBOZREVATEL reported that the Armed Forces of Ukraine use ultra-cheap disposable cargo drones Precision Payload Delivery System (PPDS) at the front. These UAVs are manufactured by the Australian company SYPAQ to provide logistics tasks in hard-to-reach places.

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