The government’s mistake, which could have stopped the entire Ukrainian military-industrial complex, has finally been corrected

How officials' mistakes almost destroyed the Ukrainian military industry.

Institute for Economic Leadership

We are talking about an imperfect government resolution, which effectively prohibited Ukrainian businesses that participate in government contracts, in particular for the army, from making a profit. As a result, the State Audit Service called the company’s profit illegal and demanded its return. Defense companies and other suppliers of goods for the front were threatened with criminal cases, and the Ukrainian military industry in general was threatened with collapse.

Finally, 3 months after the scandalous decision of the State Audit Service, disputes between the latter and the Ministry of Defense and the work of Ukrainian companies in conditions of uncertainty, the Verkhovna Rada adopted a resolution to solve the problem.

In fact, the Verkhovna Rada canceled the conclusions of the state auditor, obliging state customers to pay profits as part of the price, relying on the rules before the introduction of martial law, and for drone manufacturers – on separate Cabinet resolutions.

The Ukrainian military-industrial complex can work. And this story will remain a vivid example of how excessive state intervention, regulation and bureaucracy can cost Ukraine victory.

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