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Defense companies were owed from UAH 24 million to hundreds of millions for equipment supplies for "ePoints". Why were payments "frozen"?

The CEO of the Ukrainian Council of Arms Manufacturers, Ihor Fedirko, reported that Ukrainian manufacturers have been handing over equipment ordered for e-Points to the military, but have not yet received money for it. The debt to individual companies ranges from UAH 24 million to hundreds of millions.

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Defense companies were owed from UAH 24 million to hundreds of millions for equipment supplies for "ePoints". Why were payments "frozen"?

The CEO of the Ukrainian Council of Arms Manufacturers, Ihor Fedirko, reported that Ukrainian manufacturers have been handing over equipment ordered for e-Points to the military, but have not yet received money for it. The debt to individual companies ranges from UAH 24 million to hundreds of millions.

He announced this on Facebook.

“And these are mostly not the largest market players, for whom a delay of one or two million dollars is an unpleasant but manageable cash gap. For small companies, this is money for salaries, components, and the production of subsequent batches of equipment. Some of them are already having problems with wages,” explains Fedirko.

The reason is in the new stage of budget approval. Now the money for such programs must go through another stage of approval. The parliamentary committee must generally agree on what areas the corresponding part of the defense budget can be spent on. Since eBalls are financed from the funds of the Ministry of Defense, the program also fell under this procedure.

But the law does not specify how long such approval should take. So the military already has the equipment, and the manufacturers are waiting for funding to become available.

Fedirko addressed the Ministry of Defense, the relevant department, and the Rada Defense Committee with questions about whether they had already submitted all the necessary documents and when the companies would be able to receive the money.

"It is ironic that the law, which was supposed to increase funding for the security and defense sector by 1.56 trillion hryvnias, simultaneously created another round of approvals, due to which some defense companies are now not receiving payment," he concluded.

Previously, dev.ua wrote that the eBal system has already grown to hundreds of thousands of units of equipment. As of January, the military had ordered 240,000 drones, as well as NRCs, components, and other equipment through Brave1 Market.

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