The Ministry of Defense of Ukraine, as part of expanding the instruments for financing the purchase of equipment for the Armed Forces of Ukraine, has concluded the first contracts under state guarantees with a Ukrainian private company for a total of UAH 4.4 billion, the ministry reported.

According to a report on the ministry's website, the agreements provide for the attraction of credit funds by the manufacturer, and the state will provide the corresponding guarantees for the repayment of the loan using state budget funds.

"Production and supply of 100 special armored combat vehicles and 100 armored evacuation vehicles is expected. The conclusion of contracts with the involvement of state guarantees is an important signal for business: the state is ready to support responsible manufacturers capable of providing the army with modern solutions and high-quality products," Deputy Defense Minister Dmytro Klymenkov is quoted as saying.

It is specified that the details of the transactions are not disclosed for security reasons.

In turn, the report notes, director of the procurement policy department of the Ministry of Defense Hlib Kanevsky noted that the 2024 state budget provides up to UAH 30 billion as state guarantees for contracts aimed at increasing the defense capability and security of the state.

"State guarantees are an additional financial instrument for the purchase of military equipment for the Armed Forces of Ukraine with a long production cycle. With the help of such guarantees, the Ministry of Defense scales the capabilities of the domestic defense industry complex," he noted.