Arms imports and degradation of the Ukrainian military industry
The Ukrainian military industry is rapidly degrading and losing its competence. In its current state, it is capable of only partially meeting the needs of its armed forces, and by no means in all areas. One of the main factors leading to such a degradation is the army's over-orientation towards imported weapons and equipment. By purchasing foreign samples, the military department deprives its industry of earnings and development prospects.
On October 28, Russia in Global Affairs magazine published an extensive article “War on International Contracts. Import of weapons and military equipment to Ukraine in 2014–2021 ”. It is devoted to the main features of purchases, their impact on the state of the army and industry. The facts cited in the article perfectly show how the purchase of foreign samples harms and gradually kills its own industry.
Organizational matters
As a result of the collapse of the USSR, the newly independent Ukraine got dozens of enterprises of the military-industrial complex. They could continue the already mastered production, and also had the opportunity to develop their own samples. Until recently, this potential was actively used and allowed the industry to stay afloat.
Military production in Ukraine was heavily dependent on the cooperation established during the Soviet era. In some products, the share of components sourced from Russia exceeded 50%. Until a certain time, this was not a problem and allowed the two countries to earn money on Ukrainian and import contracts.
However, in August 2014, the new Ukrainian authorities banned the import of military and dual-use products from Russia, which dealt a serious blow to its own production. Ukraine had to urgently deploy projects and programs to replace imported products. They tried to produce the necessary products on their own, purchase them in third countries, or replace them with available analogues.
According to official data, such processes gave the desired result. However, Russia in Global Affairs notes that production still used Russian products. Despite the prohibitions, they were purchased through intermediaries or even directly. However, all this led to an increase in the cost and production time. These factors, combined with the limited financial capabilities of the Ukrainian Ministry of Defense, were the first notable blow to the military industry.
Looking for a replacement
Long before 2014, they tried to solve the problem of Russian imports at the expense of Western components. Projects for the modernization of existing models on their basis were proposed to the Ukrainian army and promoted on the international market. Such products sometimes attracted the attention of customers, but did not show much success. In addition, projects often faced the problem of the cost of the required nodes.
After 2014, the change of government and the outbreak of the civil war, new difficulties arose. Now, not all foreign partners were ready to sell the required products to Ukraine. For example, in 2016 Germany imposed a ban on the sale of Deutz engines to Ukrainian enterprises. Because of this, Ukraine was unable to fulfill one of the export contracts for armored personnel carriers BTR-3.
Russia in Global Affairs gives another, more interesting example of such problems. For many years, Ukraine has been trying to build corvettes of the new project 58250. According to preliminary agreements, such ships were to receive artillery and missiles made in Germany, Italy, the United States and other countries. However, in 2017 it became clear that the exporting states were not going to supply lethal weapons to Ukraine. Accordingly, the construction of corvettes turns out to be impossible - which is a serious blow to shipbuilding and the modernization of the Navy.
Other projects also suffer from the refusal of foreign suppliers. So, in the past, an agreement was reached on the supply of Rolls Royce engines for assault landing boats, project 58181. Several of these boats have already been completed, but in July this year the British side withdrew from its participation in the project. A replacement for the Rolls-Royce engines has not yet been found.
Import kills
Over time, the Ministry of Defense received financial and other opportunities for the purchase of finished imported military products. As it became clear later, each such contract dealt a new blow to its own industry. However, such problems did not bother those in charge, who received their benefits of a corrupt nature.
According to Russia in Global Affairs, by now the volume of imports in Ukraine's military purchases in all directions has reached the level of 40-50 percent. It includes deliveries of new imported products, used equipment, various components, etc. Naturally, the supply of foreign products leads to the abandonment of Ukrainian products, which only harms their own production.
Import is critical in the supply of small arms ammunition weapons for the army and law enforcement agencies. A wide range of products is supplied from abroad, incl. all ammunition of NATO standards. At the same time, there is practically no own production, and the remaining supply is carried out mainly at the expense of previously accumulated warehouse stocks.
A similar situation is observed in the field of other weapons. For example, the supply of American Javelin ATGMs led to a sharp reduction in purchases of their own systems, despite their advantages in tactical and technical characteristics and lower cost. The anti-tank missile situation is exacerbated by the fact that the supplier has imposed severe restrictions on the use of Javelins.
In the past, the Bogdan-Motors company, due to the support from above, was able to push the AvtoKrAZ company out of government contracts. It supplied the army and other structures with the equipment of the Minsk Automobile Plant, and the Kremenchug plant went bankrupt without orders. However, soon Bogdan was left without a lobby, did not receive new contracts and also went bankrupt. The negative consequences of these processes for the Ukrainian automotive industry are obvious.
In the field of armored vehicles, the situation is no better. So, many developments did not reach the series or were produced in small quantities. The Dozor-B product can be considered the most successful, but it also encountered difficulties. "Dozors" were planned to be built at Ukrainian enterprises, but the army eventually decided to purchase their licensed version of the Polish assembly called Oncilla. At the same time, their own enterprises were actually left out of work and without money.
Negative processes of this kind are observed in all major areas. Due to the purchase of foreign products, their own aircraft building enterprises, manufacturers of automobile and armored vehicles, etc. remain without orders. Together with orders, they lose the opportunity to maintain competencies, develop and modernize production. Long-term maintenance of this state of affairs leads to expected and predictable degradation.
Prerequisites and Causes
From 2014 to the present, Ukraine has been trying to actively develop its armed forces and other structures, and even shows some success in this direction. At the same time, imported products play a significant role in re-equipment in the form of finished samples or individual units for use in their production.
As practice shows, imports allow us to fill empty niches in a limited time and provide the army with the necessary materiel. At the same time, such purchases directly harm the Ukrainian industry. Despite various statements and assurances, this situation is not changing, and the industry has no reason for optimistic forecasts.
"Russia in Global Affairs" rightly notes that direct purchases and foreign military aid do not give Ukraine any real advantages and do not contribute to the development of the army. Their result is only the emergence of new loans, which will have to be repaid, as well as increased dependence on foreign supplier countries and lenders. It should also be noted that all these processes threaten their own industry and negatively affect the social issues associated with it.
Thus, in the current situation, foreign manufacturers of military products, as well as banks that issue loans for such purchases, remain in the black. The Ukrainian leadership is not missing out on its personal political and financial benefits. It demonstrates loyalty to foreign partners, and also does not forget about its own wallet. And personal enrichment is becoming a more important issue than rearmament of the army or the preservation of industry.
The article “War on international contracts. Import of weapons and military equipment to Ukraine in 2014–2021 ":
Information