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Problematic receivables of Defence Ministry amount to 2.7% – Ukraine's Defence Minister

Sunday, 3 September 2023, 17:02
Problematic receivables of Defence Ministry amount to 2.7% – Ukraine's Defence Minister
Oleksii Reznikov. Photo: GETTY IMAGES

Defence Minister Oleksii Reznikov has stated that only 2.7% of the ministry's receivables are problematic.

Source: Reznikov in an interview with Ukrinform.

Details: As Reznikov says, since the beginning of the full-scale invasion, when the ministry concluded contracts under simplified procedure, the share of problematic receivables has been 2.7% of the total procurement.

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The minister added that it is about undelivered or untimely delivered goods or low-quality goods that needed to be replaced.

Quote: "Either they (suppliers - ed.) say: we will deliver, but we ask to postpone the terms because a third-country manufacturer did not give us a licence, etc. Or these are Ukrainian enterprises that have not purchased some components or have not had time to produce products we ordered from them," explained the minister.

In addition, Reznikov emphasised that there are hundreds of such lawsuits. "But, not only that, but the 2.7% I mentioned—you'll laugh—probably includes several billion more [lawsuits - ed.], which is the legacy I inherited from previous years. That is, there are debtors, primarily Ukrainian contractors, who have not fulfilled their obligations, and we are with them in the courts that were started before me, and we are simply supporting them. This is included in the 2.7% of problematic receivables," said Reznikov.

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In addition, the Ministry of Defence has a "live receivable" every month. We are talking about contracts that provide for deliveries as early as 2024 and 2025.

According to Reznikov, such agreements concern long-term programmes. "If they weren't paid now, they wouldn't be able to do it because it's a missile programme and an anti-missile programme. These are our respected companies, like Luch, for example, which makes Neptune," the Defence Minister said.

Background: The Ministry of Defence has filed a lawsuit against the company that supplied low-quality dry rations to the army in order to recover an advance payment and fines for more than UAH 456 million [roughly US$12.3 million – ed.].

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