Why Ukraine is buying old weapons?
A few years ago, Ukraine was not just included in the list of the largest exporters of weapons and military equipment, but also occupied not the lowest places in it. Later, however, the situation began to change. Due to the negative impact of a number of objective factors, military exports of Ukrainian enterprises began to decline gradually, as a result of which the country deteriorated its position in the market. Meanwhile, the military and political leadership constantly talks about the desire to purchase or receive free-of-charge military products of foreign manufacture.
Thus, in recent years, there has been a characteristic trend that has a negative impact on military exports. Ukrainian industry is still capable of at least partially covering the needs of its own army. At the same time, it is possible to fulfill some export contracts. However, the potential of industry is declining, resulting in a growing importance of imports. Such trends can lead to the most severe consequences.
Past successes
Not so long ago, Ukraine could be considered one of the largest exporters of weapons and equipment in the world. Inherited from the USSR, she inherited large numbers of various defense industry enterprises. In addition, she had a solid stock of products that remained in storage. Having no need for such a material part, Ukraine removed it from storage, restored and modernized it, and then sold it to third countries. Production of new types of products also took place, but its volumes were more modest.
OBT "Oplot" - one of the Ukrainian armored vehicles offered for export. Photo of Wikimedia Commons
According to the Stockholm Peace Research Institute (SIPRI), Ukraine achieved the greatest success in arms sales in 2012. Then sales provided 4 with a place in the list of the largest exporters - the country sold military products worth almost 1,49 billion US dollars. The following year, Ukrainian enterprises earned 2013 million dollars on exports of 655, as a result of which the country dropped to the 9 place.
In the first year after the notorious “revolution of dignity” and the start of the “anti-terrorist operation,” Ukraine was able to maintain its previous indicators. In 2014, exports amounted to 651 million dollars and ensured the preservation of 9 space. In 2015, it fell to 400 million (12 place), and in the next 2016-m - rose to 535 million dollars (10 place). Last year, the cost of supply fell to a “record” 240 million, as a result of which Ukraine fell to the 13 place. SIPRI has not yet published data for the current year, but, according to different sources, the situation is unlikely to change for the better.
Before 2014, Ukraine was not always included in the rating of the largest buyers of weapons in the international market from SIPRI. Actually in 2014-m she got into this list, taking 116 place with purchases at the level of 1 million dollars. The following year, 18 million were spent on imported products and moved up to the 77 place. In the 2016 year, Ukraine was placed on the 137 site ranking with little spending. Finally, in the list of importers for 2017, Ukraine was placed in the “Others” group, without deigning its own line. At the same time, as far as we know, in recent years, the Ukrainian army has actively purchased foreign military products.
Open data shows that Ukraine is gradually deteriorating its position as an exporter of equipment and weapons, and the position as a buyer is constantly changing. At the same time, the situation is characterized by extreme instability, as a result of which, from year to year, the indicators change substantially in one direction or the other. How the situation will develop in the foreseeable future is not yet completely clear. However, the experience of recent years clearly shows that worthy grounds for optimism have simply disappeared.
Recent purchases
In June, the UN Register of Conventional Arms published data from Ukraine’s 2017 report for the year. According to this report, last year the Ukrainian army received from foreign suppliers significant quantities of various weapons different classes. Also sold their products to foreign customers. It is curious that some data directly related to Ukraine were not included in the Ukrainian report. Thus, one of the international agreements provided for the consistent transfer of military equipment by several countries to each other, after which it was to enter Ukraine.
Armored vehicles BMP-1AK during modernization. Photo GK "Ukroboronprom" / ukroboronprom.com.ua
According to the Register, in 2017, Ukraine received 2419 pistols and revolvers from Slovakia. Also, three dozen similar products came from the United States. The United States supplied 30 rifles and carbines. 460 submachine guns and 3 machine guns were delivered from Turkey to Ukraine. United States put 503 grenade different classes. It is likely that this is not all cases of transfer of products in the past year.
Interesting data contained in reports from other countries. Thus, Slovakia indicated the import of 25 infantry fighting vehicles from the Czech Republic for repairs and return to owners. According to various estimates, in the future, this technique should have been made available to one of the Polish companies. The latter has a contract with Ukraine, providing for the transfer of 200 used BMP-1. The first batch of this technology was transferred to the Ukrainian side in 2018 year. This supply is likely to be reflected in a new report for the Register of Conventional Arms.
Ukrainian industry is able to independently develop and produce anti-tank missile systems, but in the recent years special hopes in this area have been associated with imported products. A few years ago, American-made Javelin ATGMs turned from a modern, efficient missile system into the main dream and last hope of the Ukrainian army. Finally, this year the dream came true. In the spring, Washington approved the delivery of Ukrainian 37 army launchers and 210 missiles. The first batch of these weapons arrived in Ukraine by the beginning of the summer.
Future contracts
Together with the Crimea, the Ukrainian armed forces lost a significant part of the combat units and auxiliary vessels of the naval forces. This problem is being solved by building new boats for various purposes, and this process is to some extent hampered by the limited capabilities of Ukrainian shipyards. As a result, Kiev has to seek help abroad.
In mid-September, it became known that Ukraine could purchase Danish patrol boats of the Flyvefisken / Standard Flex 300 type. According to foreign media reports, an agreement has already been reached on the purchase of three such boats with a total value of more than 100 million euros. These vessels served until the beginning of this decade and then were written off due to obsolescence and incomplete compliance with the requirements of the operator. Part of the decommissioned boats was sold to small and poor countries.
The PSRL-1 grenade launcher is an American copy of the old RPG-7. Photo Airtronic-usa.com
According to some recent reports, Ukraine will acquire ships in the configuration of minesweepers. Flyvefisken boats have a modular architecture and can be equipped with sets of equipment for various purposes. In practice, about half of the boats received equipment minesweepers and used only her. The Ukrainian fleet, it is claimed, will acquire three combat units in precisely this configuration. Information on the purchase of modules for other purposes is not available, which makes some assumptions.
In mid-October in the Ukrainian press appeared news about the possible acquisition of several more foreign ships. It was alleged that the United States offered Ukraine military-technical assistance in the form of two frigates of the type Oliver Hazard Perry. In this case, the United States will have the opportunity to get rid of old and fairly long-decommissioned ships, and Ukraine will be able to replenish its naval forces.
Any details of a possible deal involving the transfer of frigates have not yet been clarified. According to first reports, the United States just came up with a proposal, and this means that countries have not yet begun negotiations and have not determined the exact terms of cooperation. Perhaps the new information on the transfer of frigates will appear soon.
Causes and background
In recent years, not the most optimistic situation has developed. Ukraine is gradually losing its position as an arms exporter and increasingly resorts to imports. It can be seen that this situation had a number of different prerequisites, both relatively old and newer. The economic policies of recent years, the lack of industrial development, fighting in the Donbas and general managerial problems are guilty of shaping current trends.
It should be recalled that the basis of the Ukrainian military exports in the past and now was the repaired and modernized equipment, taken out of storage. Ukraine at one time got large stocks of various Soviet-made combat vehicles, and their sale gave a good income. However, the number of armored vehicles suitable for repair is not infinite. In addition, after the start of the “antiterrorist operation”, it was necessary to make up for the losses of our own army. All this was aggravated by a chronic lack of funding. As a result, the commercial potential of the export modernization of old cars has decreased dramatically.
One of the Danish boats of the type Flyvefisken sold abroad. Photos of the Lithuanian Ministry of Defense
In this context, the scheme for the sale of used BMP-1s is of particular interest, in addition to Ukraine, Slovakia, the Czech Republic and Poland are involved. The infantry fighting vehicle of the first model cannot be called a rare vehicle, and at Ukrainian storage bases there were many such samples. However, the amount of such equipment that can still be restored and returned to service seems to have been reduced to menacing values. As a result, the Ukrainian army has to look for foreign suppliers. Apparently, a similar situation takes place not only in the case of infantry fighting vehicles. There may be problems with tanksself-propelled artillery, etc.
Also worth remembering the agreement on the supply of grenade launchers. According to the Register of Conventional Arms, in 2017, Ukraine sold 790 anti-tank grenade launchers to the United States. In the same period, an 503 grenade launcher was delivered from the USA. Apparently, popular and mass-produced RPG-7 products were supplied to a foreign country, and PRSL-1 grenade launchers came back. The latter are a slightly up-to-date version of the RPG-7.
It turns out that Ukraine has exhausted a usable stock of some products, while others are still available in sufficient quantities. At the same time, the available weapons are not exported to the army, but exported, followed by the purchase of foreign products, which differ little from those sold. It is not at all difficult to understand why such agreements appear. Selling the necessary weapons abroad allows you to earn good money. With the right approach, extra money can be obtained when purchasing foreign products.
Thus, there is a certain corruption component in the export and import of weapons and equipment, which also leads to an increase in estimates and aggravating the financial problems of the army. An example of this can be estimates for the project of purchasing and upgrading imported BMP-1. According to the Ukrainian press, 200 million dollars will be spent on the purchase of 5 armored vehicles from the Czech Republic. A Polish company responsible for disassembling machinery and minor repairs will receive almost 20 million for the supply of 200 chassis and over 13 million dollars for a set of towers. The final assembly with repair will be carried out by the Zhytomyr Armored Plant for 8 million dollars.
It is reported that each upgraded BMP-1 will cost the army 205 thousand dollars. However, it is necessary to take into account that the Czech Republic was selling equipment at 25 thousand dollars per unit, and the modernization actually consists in replacing non-working units and installing new communication devices. As a result, the army receives a slightly altered BMP-1 at inflated prices. The organization of questionable schemes leading to higher prices for products has clear results. Individuals and entire organizations have the opportunity to earn good money not only from the sale of equipment, but also from its purchase.
USS Boone frigate (FFG-28) of type Oliver Hazard Perry. Photo by US Navy
Another reason for the transition to import is the mismatch of production potential with the expectations and desires of the military and political leadership. During Soviet times, Ukrainian enterprises, working within the framework of cooperation, could build large warships of the main classes, as well as carry out their repairs. However, further cooperation was destroyed, and the lack of orders led to the degradation of production.
As a result of these processes, Ukrainian shipbuilders can design and build only boats for various purposes and small ships. Large surface ships or submarines are beyond their capabilities. In this case, obtaining obsolete American frigates is almost the only available way to replenish the surface fleet something other than boats. The desire to acquire Danish minesweepers also does not give rise to optimistic assessments of the prospects of Ukrainian shipbuilding, including its export potential.
Doubtful prospects
The lack of a competent economic policy, the inability to dispose of existing opportunities, the loss of combat vehicles during the civil war, the illogical control of the main industries, and the desire of high-ranking officials to cash in on certain contracts gradually led to negative consequences. Until recently, Ukraine provided for its needs and was a major exporter of military products, even if through the sale of updated products of the old production. Now the situation is changing, and the country has to rely more and more on imports.
Now Ukraine does not have all the necessary opportunities for the development of its defense industry and a new full-scale entry into the international market. Moreover, its current leadership seems to lack such a desire. Responsible persons are not interested in the long-term development of the most important sector, and are oriented towards other ways of earning money. Such an approach does not contribute to obtaining outstanding results or preserving the desired state of affairs, but it is probably quite satisfied with the military and political leadership of the country.
One outcome of this approach in the context of the defense industry is a reduction in exports and an increase in dependence on foreign supplies. Apparently, the situation will develop in a negative way and complicate the situation of the industry. In a few months, analytic organizations will start summing up the 2018 of the year, and their reports on Ukraine and its defense industry are unlikely to be overly optimistic.
On the materials of the sites:
https://korrespondent.net/
https://news.liga.net/
http://interfax.com.ua/
http://ukroboronprom.com.ua/
https://sipri.org/
https://unroca.org/
https://bmpd.livejournal.com/
Thus, in recent years, there has been a characteristic trend that has a negative impact on military exports. Ukrainian industry is still capable of at least partially covering the needs of its own army. At the same time, it is possible to fulfill some export contracts. However, the potential of industry is declining, resulting in a growing importance of imports. Such trends can lead to the most severe consequences.
Past successes
Not so long ago, Ukraine could be considered one of the largest exporters of weapons and equipment in the world. Inherited from the USSR, she inherited large numbers of various defense industry enterprises. In addition, she had a solid stock of products that remained in storage. Having no need for such a material part, Ukraine removed it from storage, restored and modernized it, and then sold it to third countries. Production of new types of products also took place, but its volumes were more modest.
OBT "Oplot" - one of the Ukrainian armored vehicles offered for export. Photo of Wikimedia Commons
According to the Stockholm Peace Research Institute (SIPRI), Ukraine achieved the greatest success in arms sales in 2012. Then sales provided 4 with a place in the list of the largest exporters - the country sold military products worth almost 1,49 billion US dollars. The following year, Ukrainian enterprises earned 2013 million dollars on exports of 655, as a result of which the country dropped to the 9 place.
In the first year after the notorious “revolution of dignity” and the start of the “anti-terrorist operation,” Ukraine was able to maintain its previous indicators. In 2014, exports amounted to 651 million dollars and ensured the preservation of 9 space. In 2015, it fell to 400 million (12 place), and in the next 2016-m - rose to 535 million dollars (10 place). Last year, the cost of supply fell to a “record” 240 million, as a result of which Ukraine fell to the 13 place. SIPRI has not yet published data for the current year, but, according to different sources, the situation is unlikely to change for the better.
Before 2014, Ukraine was not always included in the rating of the largest buyers of weapons in the international market from SIPRI. Actually in 2014-m she got into this list, taking 116 place with purchases at the level of 1 million dollars. The following year, 18 million were spent on imported products and moved up to the 77 place. In the 2016 year, Ukraine was placed on the 137 site ranking with little spending. Finally, in the list of importers for 2017, Ukraine was placed in the “Others” group, without deigning its own line. At the same time, as far as we know, in recent years, the Ukrainian army has actively purchased foreign military products.
Open data shows that Ukraine is gradually deteriorating its position as an exporter of equipment and weapons, and the position as a buyer is constantly changing. At the same time, the situation is characterized by extreme instability, as a result of which, from year to year, the indicators change substantially in one direction or the other. How the situation will develop in the foreseeable future is not yet completely clear. However, the experience of recent years clearly shows that worthy grounds for optimism have simply disappeared.
Recent purchases
In June, the UN Register of Conventional Arms published data from Ukraine’s 2017 report for the year. According to this report, last year the Ukrainian army received from foreign suppliers significant quantities of various weapons different classes. Also sold their products to foreign customers. It is curious that some data directly related to Ukraine were not included in the Ukrainian report. Thus, one of the international agreements provided for the consistent transfer of military equipment by several countries to each other, after which it was to enter Ukraine.
Armored vehicles BMP-1AK during modernization. Photo GK "Ukroboronprom" / ukroboronprom.com.ua
According to the Register, in 2017, Ukraine received 2419 pistols and revolvers from Slovakia. Also, three dozen similar products came from the United States. The United States supplied 30 rifles and carbines. 460 submachine guns and 3 machine guns were delivered from Turkey to Ukraine. United States put 503 grenade different classes. It is likely that this is not all cases of transfer of products in the past year.
Interesting data contained in reports from other countries. Thus, Slovakia indicated the import of 25 infantry fighting vehicles from the Czech Republic for repairs and return to owners. According to various estimates, in the future, this technique should have been made available to one of the Polish companies. The latter has a contract with Ukraine, providing for the transfer of 200 used BMP-1. The first batch of this technology was transferred to the Ukrainian side in 2018 year. This supply is likely to be reflected in a new report for the Register of Conventional Arms.
Ukrainian industry is able to independently develop and produce anti-tank missile systems, but in the recent years special hopes in this area have been associated with imported products. A few years ago, American-made Javelin ATGMs turned from a modern, efficient missile system into the main dream and last hope of the Ukrainian army. Finally, this year the dream came true. In the spring, Washington approved the delivery of Ukrainian 37 army launchers and 210 missiles. The first batch of these weapons arrived in Ukraine by the beginning of the summer.
Future contracts
Together with the Crimea, the Ukrainian armed forces lost a significant part of the combat units and auxiliary vessels of the naval forces. This problem is being solved by building new boats for various purposes, and this process is to some extent hampered by the limited capabilities of Ukrainian shipyards. As a result, Kiev has to seek help abroad.
In mid-September, it became known that Ukraine could purchase Danish patrol boats of the Flyvefisken / Standard Flex 300 type. According to foreign media reports, an agreement has already been reached on the purchase of three such boats with a total value of more than 100 million euros. These vessels served until the beginning of this decade and then were written off due to obsolescence and incomplete compliance with the requirements of the operator. Part of the decommissioned boats was sold to small and poor countries.
The PSRL-1 grenade launcher is an American copy of the old RPG-7. Photo Airtronic-usa.com
According to some recent reports, Ukraine will acquire ships in the configuration of minesweepers. Flyvefisken boats have a modular architecture and can be equipped with sets of equipment for various purposes. In practice, about half of the boats received equipment minesweepers and used only her. The Ukrainian fleet, it is claimed, will acquire three combat units in precisely this configuration. Information on the purchase of modules for other purposes is not available, which makes some assumptions.
In mid-October in the Ukrainian press appeared news about the possible acquisition of several more foreign ships. It was alleged that the United States offered Ukraine military-technical assistance in the form of two frigates of the type Oliver Hazard Perry. In this case, the United States will have the opportunity to get rid of old and fairly long-decommissioned ships, and Ukraine will be able to replenish its naval forces.
Any details of a possible deal involving the transfer of frigates have not yet been clarified. According to first reports, the United States just came up with a proposal, and this means that countries have not yet begun negotiations and have not determined the exact terms of cooperation. Perhaps the new information on the transfer of frigates will appear soon.
Causes and background
In recent years, not the most optimistic situation has developed. Ukraine is gradually losing its position as an arms exporter and increasingly resorts to imports. It can be seen that this situation had a number of different prerequisites, both relatively old and newer. The economic policies of recent years, the lack of industrial development, fighting in the Donbas and general managerial problems are guilty of shaping current trends.
It should be recalled that the basis of the Ukrainian military exports in the past and now was the repaired and modernized equipment, taken out of storage. Ukraine at one time got large stocks of various Soviet-made combat vehicles, and their sale gave a good income. However, the number of armored vehicles suitable for repair is not infinite. In addition, after the start of the “antiterrorist operation”, it was necessary to make up for the losses of our own army. All this was aggravated by a chronic lack of funding. As a result, the commercial potential of the export modernization of old cars has decreased dramatically.
One of the Danish boats of the type Flyvefisken sold abroad. Photos of the Lithuanian Ministry of Defense
In this context, the scheme for the sale of used BMP-1s is of particular interest, in addition to Ukraine, Slovakia, the Czech Republic and Poland are involved. The infantry fighting vehicle of the first model cannot be called a rare vehicle, and at Ukrainian storage bases there were many such samples. However, the amount of such equipment that can still be restored and returned to service seems to have been reduced to menacing values. As a result, the Ukrainian army has to look for foreign suppliers. Apparently, a similar situation takes place not only in the case of infantry fighting vehicles. There may be problems with tanksself-propelled artillery, etc.
Also worth remembering the agreement on the supply of grenade launchers. According to the Register of Conventional Arms, in 2017, Ukraine sold 790 anti-tank grenade launchers to the United States. In the same period, an 503 grenade launcher was delivered from the USA. Apparently, popular and mass-produced RPG-7 products were supplied to a foreign country, and PRSL-1 grenade launchers came back. The latter are a slightly up-to-date version of the RPG-7.
It turns out that Ukraine has exhausted a usable stock of some products, while others are still available in sufficient quantities. At the same time, the available weapons are not exported to the army, but exported, followed by the purchase of foreign products, which differ little from those sold. It is not at all difficult to understand why such agreements appear. Selling the necessary weapons abroad allows you to earn good money. With the right approach, extra money can be obtained when purchasing foreign products.
Thus, there is a certain corruption component in the export and import of weapons and equipment, which also leads to an increase in estimates and aggravating the financial problems of the army. An example of this can be estimates for the project of purchasing and upgrading imported BMP-1. According to the Ukrainian press, 200 million dollars will be spent on the purchase of 5 armored vehicles from the Czech Republic. A Polish company responsible for disassembling machinery and minor repairs will receive almost 20 million for the supply of 200 chassis and over 13 million dollars for a set of towers. The final assembly with repair will be carried out by the Zhytomyr Armored Plant for 8 million dollars.
It is reported that each upgraded BMP-1 will cost the army 205 thousand dollars. However, it is necessary to take into account that the Czech Republic was selling equipment at 25 thousand dollars per unit, and the modernization actually consists in replacing non-working units and installing new communication devices. As a result, the army receives a slightly altered BMP-1 at inflated prices. The organization of questionable schemes leading to higher prices for products has clear results. Individuals and entire organizations have the opportunity to earn good money not only from the sale of equipment, but also from its purchase.
USS Boone frigate (FFG-28) of type Oliver Hazard Perry. Photo by US Navy
Another reason for the transition to import is the mismatch of production potential with the expectations and desires of the military and political leadership. During Soviet times, Ukrainian enterprises, working within the framework of cooperation, could build large warships of the main classes, as well as carry out their repairs. However, further cooperation was destroyed, and the lack of orders led to the degradation of production.
As a result of these processes, Ukrainian shipbuilders can design and build only boats for various purposes and small ships. Large surface ships or submarines are beyond their capabilities. In this case, obtaining obsolete American frigates is almost the only available way to replenish the surface fleet something other than boats. The desire to acquire Danish minesweepers also does not give rise to optimistic assessments of the prospects of Ukrainian shipbuilding, including its export potential.
Doubtful prospects
The lack of a competent economic policy, the inability to dispose of existing opportunities, the loss of combat vehicles during the civil war, the illogical control of the main industries, and the desire of high-ranking officials to cash in on certain contracts gradually led to negative consequences. Until recently, Ukraine provided for its needs and was a major exporter of military products, even if through the sale of updated products of the old production. Now the situation is changing, and the country has to rely more and more on imports.
Now Ukraine does not have all the necessary opportunities for the development of its defense industry and a new full-scale entry into the international market. Moreover, its current leadership seems to lack such a desire. Responsible persons are not interested in the long-term development of the most important sector, and are oriented towards other ways of earning money. Such an approach does not contribute to obtaining outstanding results or preserving the desired state of affairs, but it is probably quite satisfied with the military and political leadership of the country.
One outcome of this approach in the context of the defense industry is a reduction in exports and an increase in dependence on foreign supplies. Apparently, the situation will develop in a negative way and complicate the situation of the industry. In a few months, analytic organizations will start summing up the 2018 of the year, and their reports on Ukraine and its defense industry are unlikely to be overly optimistic.
On the materials of the sites:
https://korrespondent.net/
https://news.liga.net/
http://interfax.com.ua/
http://ukroboronprom.com.ua/
https://sipri.org/
https://unroca.org/
https://bmpd.livejournal.com/
Information