BTR-4 and Dozor-B. Scandalous production shutdown
Ukrainian production of armored combat vehicles is constantly faced with problems of a financial, technological or organizational nature, which leads to very unpleasant consequences. Right now you can watch a couple of regular stories of this kind. At the same time, two scandalous situations are developing at once - they are related to the production of BTR-4 armored personnel carriers and Dozor-B armored vehicles.
Armored personnel carrier BTR-4. Photo by GK "Ukroboronprom" / ukroboronprom.com.ua
The armored personnel carrier BTR-4 in the past has repeatedly become the protagonist of unpleasant stories, and now again is in the center of scandal. In recent days, there has been an exchange of views and accusations, in which the Ukroboronprom concern, the Ministry of Defense and several other organizations participated. Together, they are trying to find the culprits of the situation. However, this process is more like shifting responsibility to each other.
On August 14, Ukroboronprom Group of Companies announced problems with the production of BTR-4 and their consequences. Kharkov Design Bureau of Mechanical Engineering A.A. Morozov was forced to switch to a two-day working week, since the Ministry of Defense made a number of dubious decisions.
The concern indicates that the ministry has stopped financing the production of BTR-4 due to the inability to produce the required amount of equipment. The pace of production is insufficient due to the inability of the enterprise "Lozivsky Kovalsky-Mechanical Plant" to supply the necessary armored hulls. It is noted that, following the instructions of the Ministry of Defense, only LKMZ can produce cases made of 71 steel.
Due to the failure of the contract, the Ministry of Defense demands that KKBM pay a fine of 82,3 million hryvnias (approx. 220 million rubles). In addition, the military, without giving any reason, stopped funding the creation and modernization of armored combat vehicles. Lack of orders and penalties can completely block the work of HCMB.
On August 15, the military department published its response to the allegations of Ukroboronprom, in which they called them unfounded. The ministry recalled that since 2014 in the state defense order funds have been provided for the purchase of machines of the BTR-4 family; contracts for this equipment provide for an advance payment of 70-80 percent. At the same time, the fulfillment of the terms of most contracts was disrupted.
The last such contract was signed in 2017, and it had to be broken. For two years KHKBM received the funding provided, but handed over to the customer only 7 armored vehicles. A few more products are in production, but about half were not even mortgaged. With all this, KHKBM did not purchase or did not receive a significant part of the required components and assemblies. In particular, the buildings are not supplied in sufficient quantities due to the fact that KHKBM does not pay LKMZ on time.
Housing for BTR-4. Photo by GK "Ukroboronprom" / ukroboronprom.com.ua
In recent months, the Ministry of Defense held several meetings, during which it tried to find ways out of this situation. All these measures failed, and on August 15, the ministry sent a corresponding appeal to the top leadership of Ukraine.
15 August LKMZ sent a letter to the President of Ukraine. It indicated that the HCBM should plant approx. 75 mln UAH in the form of advance payments or payment for finished products. In this case, we are talking only about already manufactured cases.
LKMZ touched upon the subject of armor. At the insistence of Ukroboronprom, Finnish steel MiiluxProtection 4 is now used in the construction of the BTR-500. The plant claims that such raw materials are intended for the production of safes and collection vehicles, and it was purchased through an intermediary company in Poland. Armored vehicles from such material do not meet the requirements, but they allow to build corruption schemes. So, the Finnish steel case is approximately 1 million UAH more expensive than that made from our own raw materials.
On August 16, Ukroboronprom Group of Companies answered the ministry and published interesting information on the production of armored vehicles. The concern accused the Lozovo Forge and Mechanical Plant of cheating. LKMZ claims that the use of Finnish-made steel armored vehicles in construction leads to an increase in the cost of the product by 1 mln UAH. However, the HCBM for the same building requires 400 thousand less than LKMZ. Serial production will save millions. All this is called a sign of unfair competition.
Also, Ukroboronprom recalled the impossibility of assembling buildings. The 85 military representative of the Ministry of Defense temporarily blocked the use of imported armor used on the BTR-4. Moreover, even the presence of such steel does not solve all the problems. In November last year, the 85 representative informed the KGBM that the Lozovo plant is capable of producing only 1,45 armored vehicles per month.
Such things may indicate the presence of a conspiracy of the 85-th representative office and LKMZ, aimed at the development of budget funds. In addition, Ukroboronprom pointed out that Finnish steel MiiluxProtection 500 is actively used in the construction of foreign armored vehicles and meets the standards. They also pointed out the ability of LKMZ to produce the required number of high-quality buildings.
Thus, the production of the BTR-4 armored personnel carriers, which was already not the easiest and most successful, was faced with new organizational and financial problems. The participants in the production and the customer exchange various charges and try to find the guilty party in disrupting the production program, as well as identify corruption schemes that lead to unnecessary expenses.
Armored car "Dozor-B". Wikimedia Commons Photos
Shortly before the current exchange of applications, the construction of the BTR-4 actually stopped. The release of equipment was carried out under the 2017 contract, which provided for the supply of 45 armored vehicles. Of these, the customer received only seven in two years. A certain amount of equipment remains unfinished, and the assembly of another is not possible due to the lack of units, including armored corps.
What will happen next is unclear. To resume the assembly of armored personnel carriers, it is necessary to provide funding, solve organizational problems and reconcile contractors. All of this can be extremely challenging, especially in the current environment. Apparently, in the near future story with the BTR-4 will be continued, and it is unlikely that this will be a happy ending. Regardless of the further development of the situation, the production of the BTR-4 is temporarily stopped.
Almost simultaneously with the events surrounding the BTR-4, an equally interesting situation is developing with the production of Dozor-B armored vehicles. In early August, Radio Liberty announced that there were no plans to purchase such armored cars in the state defense order for 2018 and 2019. At the same time, the army receives Polish-made Oncilla machines.
This situation looks extremely interesting, since the Polish Oncilla armored car is a modified version of Dozor-B, created with the participation of Ukrainian enterprises. The basic armored car was created in the middle of the last decade, and then it took several years to organize mass production. Only in 2016, the army received a dozen armored cars, after which their construction stopped.
In 2013, HCBM and the Polish company Mista created an improved version of the Dozor-B machine called Oncilla. Soon Poland launched its serial production on its own. Perhaps the first customer of the Polish armored cars was the Ukrainian army. It is reported that the first Oncilla machines have already been put into operation, and new ones may follow.
The Polish version of Dozor-B has some differences from the base machine. It uses a more powerful 210-strong engine, the housing is modified, and the internal compartments are distinguished by improved ergonomics. Other combat equipment is offered. Oncilla also has a higher build quality.
Armored Car Oncilla. Photo Mil.in.ua
Probably, the technical features of the armored cars influenced the choice of the army. However, other factors cannot be ruled out, including economic and corruption. However, regardless of the real conditions, the current situation looks strange. The Dozor-B armored car was first shown 15 years ago, and then for a long time and unsuccessfully put into series. In recent years, they constantly talked about the imminent mass production of such equipment, but they collected only a dozen domestic armored cars, after which they switched to the purchase of their imported version.
In just a few weeks, new unpleasant details of the construction of Ukrainian armored vehicles became known. The release of one sample turned out to be impossible, and they decided to replace the other with imported equipment. A similar situation with BTR-4 and Dozor-B raises legitimate questions, and the answers to them are obvious.
The main reason is the lack of clear plans for the development of armored weapons and equipment, taking into account the financial and organizational capabilities of the Ministry of Defense, as well as the technological potential of industry. Loud statements about certain intentions for the release of equipment are regularly heard, but the steps necessary for their implementation are not made.
Data on the procurement of components from third countries, including through various intermediaries, may indicate the existence of collusion of a corrupt nature. Overpricing, combined with the limited financial capabilities of the Ministry of Defense, is known to hit the production of equipment, the rearmament of the army and the state of defense enterprises.
As a result, Ukraine faces characteristic challenges. It temporarily cannot produce the required armored personnel carriers, and in the production of armored vehicles it is necessary to rely on foreign suppliers. Most likely, the current situation will develop, but the optimistic scenario does not look the most likely.
Armored personnel carrier BTR-4. Photo by GK "Ukroboronprom" / ukroboronprom.com.ua
BTR-4 and charges
The armored personnel carrier BTR-4 in the past has repeatedly become the protagonist of unpleasant stories, and now again is in the center of scandal. In recent days, there has been an exchange of views and accusations, in which the Ukroboronprom concern, the Ministry of Defense and several other organizations participated. Together, they are trying to find the culprits of the situation. However, this process is more like shifting responsibility to each other.
On August 14, Ukroboronprom Group of Companies announced problems with the production of BTR-4 and their consequences. Kharkov Design Bureau of Mechanical Engineering A.A. Morozov was forced to switch to a two-day working week, since the Ministry of Defense made a number of dubious decisions.
The concern indicates that the ministry has stopped financing the production of BTR-4 due to the inability to produce the required amount of equipment. The pace of production is insufficient due to the inability of the enterprise "Lozivsky Kovalsky-Mechanical Plant" to supply the necessary armored hulls. It is noted that, following the instructions of the Ministry of Defense, only LKMZ can produce cases made of 71 steel.
Due to the failure of the contract, the Ministry of Defense demands that KKBM pay a fine of 82,3 million hryvnias (approx. 220 million rubles). In addition, the military, without giving any reason, stopped funding the creation and modernization of armored combat vehicles. Lack of orders and penalties can completely block the work of HCMB.
On August 15, the military department published its response to the allegations of Ukroboronprom, in which they called them unfounded. The ministry recalled that since 2014 in the state defense order funds have been provided for the purchase of machines of the BTR-4 family; contracts for this equipment provide for an advance payment of 70-80 percent. At the same time, the fulfillment of the terms of most contracts was disrupted.
The last such contract was signed in 2017, and it had to be broken. For two years KHKBM received the funding provided, but handed over to the customer only 7 armored vehicles. A few more products are in production, but about half were not even mortgaged. With all this, KHKBM did not purchase or did not receive a significant part of the required components and assemblies. In particular, the buildings are not supplied in sufficient quantities due to the fact that KHKBM does not pay LKMZ on time.
Housing for BTR-4. Photo by GK "Ukroboronprom" / ukroboronprom.com.ua
In recent months, the Ministry of Defense held several meetings, during which it tried to find ways out of this situation. All these measures failed, and on August 15, the ministry sent a corresponding appeal to the top leadership of Ukraine.
15 August LKMZ sent a letter to the President of Ukraine. It indicated that the HCBM should plant approx. 75 mln UAH in the form of advance payments or payment for finished products. In this case, we are talking only about already manufactured cases.
LKMZ touched upon the subject of armor. At the insistence of Ukroboronprom, Finnish steel MiiluxProtection 4 is now used in the construction of the BTR-500. The plant claims that such raw materials are intended for the production of safes and collection vehicles, and it was purchased through an intermediary company in Poland. Armored vehicles from such material do not meet the requirements, but they allow to build corruption schemes. So, the Finnish steel case is approximately 1 million UAH more expensive than that made from our own raw materials.
Return move
On August 16, Ukroboronprom Group of Companies answered the ministry and published interesting information on the production of armored vehicles. The concern accused the Lozovo Forge and Mechanical Plant of cheating. LKMZ claims that the use of Finnish-made steel armored vehicles in construction leads to an increase in the cost of the product by 1 mln UAH. However, the HCBM for the same building requires 400 thousand less than LKMZ. Serial production will save millions. All this is called a sign of unfair competition.
Also, Ukroboronprom recalled the impossibility of assembling buildings. The 85 military representative of the Ministry of Defense temporarily blocked the use of imported armor used on the BTR-4. Moreover, even the presence of such steel does not solve all the problems. In November last year, the 85 representative informed the KGBM that the Lozovo plant is capable of producing only 1,45 armored vehicles per month.
Such things may indicate the presence of a conspiracy of the 85-th representative office and LKMZ, aimed at the development of budget funds. In addition, Ukroboronprom pointed out that Finnish steel MiiluxProtection 500 is actively used in the construction of foreign armored vehicles and meets the standards. They also pointed out the ability of LKMZ to produce the required number of high-quality buildings.
The hustle and bustle of the BTR-4
Thus, the production of the BTR-4 armored personnel carriers, which was already not the easiest and most successful, was faced with new organizational and financial problems. The participants in the production and the customer exchange various charges and try to find the guilty party in disrupting the production program, as well as identify corruption schemes that lead to unnecessary expenses.
Armored car "Dozor-B". Wikimedia Commons Photos
Shortly before the current exchange of applications, the construction of the BTR-4 actually stopped. The release of equipment was carried out under the 2017 contract, which provided for the supply of 45 armored vehicles. Of these, the customer received only seven in two years. A certain amount of equipment remains unfinished, and the assembly of another is not possible due to the lack of units, including armored corps.
What will happen next is unclear. To resume the assembly of armored personnel carriers, it is necessary to provide funding, solve organizational problems and reconcile contractors. All of this can be extremely challenging, especially in the current environment. Apparently, in the near future story with the BTR-4 will be continued, and it is unlikely that this will be a happy ending. Regardless of the further development of the situation, the production of the BTR-4 is temporarily stopped.
Replacement for the "Watch"
Almost simultaneously with the events surrounding the BTR-4, an equally interesting situation is developing with the production of Dozor-B armored vehicles. In early August, Radio Liberty announced that there were no plans to purchase such armored cars in the state defense order for 2018 and 2019. At the same time, the army receives Polish-made Oncilla machines.
This situation looks extremely interesting, since the Polish Oncilla armored car is a modified version of Dozor-B, created with the participation of Ukrainian enterprises. The basic armored car was created in the middle of the last decade, and then it took several years to organize mass production. Only in 2016, the army received a dozen armored cars, after which their construction stopped.
In 2013, HCBM and the Polish company Mista created an improved version of the Dozor-B machine called Oncilla. Soon Poland launched its serial production on its own. Perhaps the first customer of the Polish armored cars was the Ukrainian army. It is reported that the first Oncilla machines have already been put into operation, and new ones may follow.
The Polish version of Dozor-B has some differences from the base machine. It uses a more powerful 210-strong engine, the housing is modified, and the internal compartments are distinguished by improved ergonomics. Other combat equipment is offered. Oncilla also has a higher build quality.
Armored Car Oncilla. Photo Mil.in.ua
Probably, the technical features of the armored cars influenced the choice of the army. However, other factors cannot be ruled out, including economic and corruption. However, regardless of the real conditions, the current situation looks strange. The Dozor-B armored car was first shown 15 years ago, and then for a long time and unsuccessfully put into series. In recent years, they constantly talked about the imminent mass production of such equipment, but they collected only a dozen domestic armored cars, after which they switched to the purchase of their imported version.
Who is to blame and what to do
In just a few weeks, new unpleasant details of the construction of Ukrainian armored vehicles became known. The release of one sample turned out to be impossible, and they decided to replace the other with imported equipment. A similar situation with BTR-4 and Dozor-B raises legitimate questions, and the answers to them are obvious.
The main reason is the lack of clear plans for the development of armored weapons and equipment, taking into account the financial and organizational capabilities of the Ministry of Defense, as well as the technological potential of industry. Loud statements about certain intentions for the release of equipment are regularly heard, but the steps necessary for their implementation are not made.
Data on the procurement of components from third countries, including through various intermediaries, may indicate the existence of collusion of a corrupt nature. Overpricing, combined with the limited financial capabilities of the Ministry of Defense, is known to hit the production of equipment, the rearmament of the army and the state of defense enterprises.
As a result, Ukraine faces characteristic challenges. It temporarily cannot produce the required armored personnel carriers, and in the production of armored vehicles it is necessary to rely on foreign suppliers. Most likely, the current situation will develop, but the optimistic scenario does not look the most likely.
Information