Business news from Ukraine

Business news from Ukraine

Sweden to provide 4.8 bln kronor in funding for air defense systems, drones, and ammunition for Ukraine

Sweden is allocating 4.8 billion Swedish kronor to strengthen Ukraine’s defense capabilities. This support is part of the 19th aid package presented this year.

According to the Swedish Ministry of Defense, on May 22, the government decided to instruct the Swedish Armed Forces to make financial contributions to multilateral funds and initiatives aimed at strengthening Ukraine’s defense capabilities. The total amount of donations is approximately 4.8 billion Swedish kronor. The international community has established a number of multilateral funds and initiatives aimed at purchasing materials and equipment to strengthen Ukraine’s defense capabilities. Sweden is contributing to several of them.

“These payments will make the Ukrainian Armed Forces and defense industry stronger in their defense against Russia,” said Defense Minister Paul Jonson.

In particular, these are contributions to several capability coalitions within the Contact Group on Defense for Ukraine:

Demining Coalition: SEK 100 million. Sweden’s assistance will help finance the purchase of demining equipment.

Drone Coalition: SEK 300 million. Sweden will help finance the purchase of various types of unmanned aerial vehicles.

Maritime Security Coalition: SEK 50 million. Sweden’s contribution will help finance the training of Ukrainian Navy personnel as part of Operation Interchange.

Security and IT Management Coalition: SEK 30 million. Sweden’s contribution will help finance the purchase of equipment for the creation of Ukraine’s Delta management system.

Sweden has also agreed to further contribute to the “Danish model” of arms procurement. The government has now decided to allocate an additional SEK 1 billion.

In addition, the government has decided to allocate SEK 418 million for the purchase of equipment to support the build-up of Ukraine’s ground combat capabilities, such as armored vehicles. Denmark is leading the procurement. Ukraine has asked the countries of Northern and Baltic Europe for support in developing the country’s mechanized ground combat capabilities. Sweden has therefore initiated cooperation with the countries of Northern and Baltic Europe for this purpose. Thanks to cooperation between the countries of Northern and Baltic Europe, there are opportunities to develop joint solutions and coordinate support from different countries in order to achieve a greater effect for Ukraine.

As a supplement to Sweden’s national procurement of ammunition for Ukraine, the government has decided to support two multilateral initiatives for the procurement of ammunition. The Czech Republic has taken the initiative to procure large quantities of ammunition with short delivery times on the global market. This includes artillery ammunition, which Ukraine is in great need of. Sweden has previously contributed to this initiative, and the government has now decided to allocate an additional SEK 550 million.

Estonia has taken a similar initiative, which also aims to co-finance the purchase of ammunition. The government has decided to allocate just over SEK 546 million to the Estonian initiative.

It is noted that Sweden’s contribution in the field of ammunition is an important part of achieving the EU’s goal of providing Ukraine with at least 2 million artillery shells by 2025.

The government is also allocating more than SEK 1 billion for the purchase of both air defense systems and long-range drones to combat targets deep in the battlefield as part of multilateral cooperation.

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Zelenskyy and Stubb discuss defense cooperation and drone production

During his working visit to New York, Ukrainian President Volodymyr Zelenskyy met with Finnish President Alexander Stubb to discuss the situation on the battlefield, Ukraine’s defense needs, and international cooperation.
According to the press service of the Ukrainian president, “the meeting discussed Ukrainian-Finnish defense cooperation, specifically the joint production of drones and the exchange of experience in this area.”
Zelenskyy noted that Ukraine needs air defense systems, including man-portable air defense systems. He also briefed his interlocutor on the current stage of implementation of the agreements reached during the NATO summit in Washington.
“Volodymyr Zelenskyy emphasized that it is important for Ukraine to obtain permission from its partners and the means to strike deep into Russian territory,” the press service reports.
The parties also discussed what international efforts are needed to achieve a lasting and just peace for Ukraine, as well as the role of the Global South in this process.

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Kuleba: Ukraine and Latvia are increasing drone production

Ukraine and Latvia are working to increase drone production, Ukrainian Foreign Minister Dmytro Kuleba has said.

During a joint press conference in Kyiv with Latvian Foreign Minister Baiba Braže, Kuleba noted the great potential of Ukrainian and Latvian companies to increase production of attack UAVs.

“I am very grateful to Latvia for its leadership in the Drone Coalition. We are now working together to increase this production – we need more drones. I believe that Ukrainian and Latvian companies can really do a lot in this direction,” he said.

The minister also noted Latvia’s decision to join the Czech initiative to purchase artillery shells and noted that the production of shells was one of the central issues during the bilateral talks.

Kuleba also thanked Braža for making her first visit in her new position to Ukraine, which is a sign of special respect for Ukraine and its defenders.

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Rada exempted from taxation drone manufacturers in Ukraine

The Verkhovna Rada has supported drone production in Ukraine by exempting components of unmanned aerial vehicles (UAVs) from value added tax and import duty for the time being.
Bills No. 9275 and 9276 were voted for by 284 and 289 people’s deputies at the plenary session of the Verkhovna Rada on Monday in the first reading and as a whole, respectively, parliamentarian Yaroslav Zheleznyak (Golos faction) said in a Telegram.
The bills amend the Tax and Customs Codes and help optimize UAV production and supply processes.
In particular, for the duration of martial law, components (materials, units, equipment units, components) of UAVs that enterprises import for their own activities for the production and repair of unmanned aerial vehicles are exempt from VAT and import duty.

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Israel will transfer technology related to missile and drone warning to Ukraine

The work on the transfer of Israeli technologies related to smart alerts for missiles and drones to Ukraine is in progress, said the Ambassador of Ukraine to Israel Yevgeniy Korniychuk.
“Regarding the official things that we can comment – there is work on the transfer of Israeli technology related to smart alerts concerning missiles and drones. This technology is officially being transferred by the Israeli side. And I think that in a certain time we will receive it completely,” he said at a briefing at the Media Center Ukraine.
The Ambassador added that Ukraine still needs more active military-technical cooperation. However, according to him, there are many projects that cannot be commented on publicly yet.
“In order to have specifics on Iranian drones, I think it will take a few weeks. Since the government has just started work, it needs to make a decision taking into account the position of the U.S. as a major strategic partner, and the interests of the public,” the ambassador said.
He explained that the gap between the right-wing bloc that came to power and the left-wing forces is very small – 40 thousand voters, and the agenda is very much related to domestic politics, as well as the Palestinian question.
“So the issue of Ukraine is not a priority. Although we are trying with all our might to make it so,” Korniychuk added.
At the same time, the Israeli Foreign Ministry said that the issue of the war in Ukraine is a priority, said the Ukrainian diplomat.
“The minister said that he would facilitate more aid to Ukraine, without specifying it,” the ambassador said.

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