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Government permits drone and EW equipment manufacturers to include loan costs in contract prices

Ukraine Government

Ministry of Defence of Ukraine, posted 30 July 2025 17:00

Domestic manufacturers of unmanned systems and electronic warfare equipment have been granted the right to include loan servicing costs in the price of public contracts. The Cabinet of Ministers of Ukraine adopted the decision on the initiative of the Ministry of Defense.

Under the new rules, contractors may take into account commissions and interest on loans or borrowings when forming the contract price, but not more than 10% of the cost of goods, services and works. Contractors must also justify the inclusion of these costs.

"This new financial mechanism will allow Ukrainian producers to create more weapons and technologies, faster and more efficiently. We are scaling up our defense industry. We are attracting more resources. The result is millions of Ukrainian drones for the front line," emphasized Minister of Defense of Ukraine Denys Shmyhal.

This decision should stimulate production and minimize the risk of disruption of arms supplies to the Armed Forces. In addition, the novelty takes into account the specifics of the defense industry: the long production cycle of drones and electronic warfare equipment requires contractors to attract credit funds.

Amendments were made to the Procedure for the Procurement of Unmanned Systems, Tactical Electronic Warfare Equipment of Domestic Production and Their Components, approved by Resolution No. 1275 of the Cabinet of Ministers of Ukraine of November 11, 2022.