NATO agency blocks Ukraine’s international defense procurement – Deputy Defense Minister
This was announced on November 8 by Deputy Minister of Defense of Ukraine Oleksandr Nosov, who is responsible for military-technical policy at the ministry,
In particular, he said this during a meeting with Stacy Cummings, who until September was the US Deputy Secretary of Defense for Procurement and is now appointed Head of the NATO Support and Procurement Agency (NSPA), which, according to Nosov, is considered the world’s most transparent defense procurement organization.
“I expressed problematic issues between the MOU and the NSPA, in particular regarding the fundamentally non-pro-Ukrainian position of some members of the NSPA Supervisory Board, who blocked some of our contracts,” Oleksandr Nosov said about the results of the meeting.
At the same time, he did not say which countries are in question.
He said that it was decided to consider sending a representative of the Ukrainian Ministry of Defense in 2022 as a contact person from Ukraine to the NSPA, who has experience / internship at the Agency (there are representatives from all NATO countries and partners except Ukraine).
“It was agreed that for the Ministry of Defense of Ukraine, the maximum interest rate of the NSPA will be up to 3% of the value of a foreign manufacturer on the condition of DDP Ukraine [Delivered Duty Paid]. They also agreed on a schedule for repaying the NSPA’s obligations under Ukrainian orders, “Nosov said.
It will be recalled that in January 2019, the Verkhovna Rada approved Bill 129122, which allowed state customers to purchase defense products, works and services from abroad directly, without intermediaries in the form of special export companies.
At the end of January 2019, the Ministry of Defense, by Order № 29, determined the procedure for procurement of goods, works and services through the NATO Support and Supply Agency (NSPA).
In 2019, during the first test purchase through the NSPA, the Ministry of Defense purchased tracks for armored vehicles, machine gun accessories and a license to use the software.
It was also planned to buy shoes and field suits for the Special Operations Forces from NATO, as there are no manufacturers in Ukraine yet that will ensure the appropriate quality of materials and production technology. However, it is unknown whether such a purchase took place.
In addition, in 2019, the Department of Defense signed two contracts with the US Government under the FMS program, then purchased another batch of anti-tank guided missiles Javelin and launchers. Regarding this purchase, it is known that in October 2019, the US State Department approved the sale of 150 missiles and 10 launchers to Ukraine for a total of $ 39.2 million. taking into account additional services. A contract worth $ 36.5 million was signed in December, and the first batch of missiles arrived in June 2020.
Already in 2021, the Ministry of Defense reported that it had placed an order through the NSPA for weapons and equipment and made a prepayment for all ordered products:
- 37 complexes of counteraction to unmanned aerial vehicles EDM4S-UA;
- 12 sets of muzzle velocity measurement system SL-520REF;
- 90 sets of 8.58 × 70 (7.62 × 51) mm Barrett sniper rifles;
- 2 underwater tugs;
- 73 sets of spare parachute system AZ-95 series 3;
- 73 sets of training parachute system AD-95 series 3;
- 4 sets of parachute rescue system Towed Jumper Release System;
- 1 set of radar system MFTR-2100/39;
- 1 demining machine (BOZENA-5) with attachments;
- 1 demining machine (BOZENA-4) with attachments.
In addition, a contract was signed with a Turkish manufacturer for ammunition for a 12.7 × 99 mm sniper rifle with an armor-piercing incendiary bullet and 12.7 × 108 mm blank cartridges.
In May 2021, the Cabinet of Ministers of Ukraine adopted Resolution № 527 “On approval of the list of international specialized organizations, their representative offices engaged in the procurement of goods, works and services for defense purposes.” The list includes the NATO Communications and Information Agency (NCIA), the NATO Support and Procurement Agency (NSPA) and the US Government’s Foreign Military Sales Program. or FMS).
It will be recalled that according to the law adopted in 2019, in the case of purchasing military products from a foreign manufacturer or supplier in excess of five million euros, Ukraine must receive offset compensation.
(C)INDUSTRIAL PORTAL UKRAINE 2021