Foreign Policy analyzed the possibilities of the United States in financing arms purchases for Ukraine and the role of the Defense Procurement Agency in this process. The publication believes that the creation of the Defense Procurement Agency is the change that will ensure transparent contracting of weapons directly with manufacturers. At the same time, the reform-oriented management of the Defense Procurement Agency excludes intermediaries from the arms supply chain in favor of direct contracts. One of the signs of the success of this process is the constant resistance from intermediaries. With the support of allies, the Ministry of Defense has formed a supervisory board for the Defense Procurement Agency, which includes reputable independent experts to oversee procurement. This will help maintain high standards in arms procurement, make the process even more efficient, and ensure the Agency’s independence. It is important to note that the United States would not be the first government to finance the purchase of Ukrainian arms. For example, Denmark is financing contracts between Ukraine and defense manufacturers. Our countries have developed a transparent financial control mechanism, which includes production visits, delivery verification, and audit processes. Read more ➡️ https://bit.ly/4hzT9td
Defense Procurement Agency (DPA) MoD of Ukraine’s Post
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France’s backtrack could benefit Turkish defense companies European Union countries are preparing to include defense companies from countries outside the 27-member union in their joint purchases in the defense industry. According to experts, France’s withdrawal of its long-standing objections could pave the way for Turkey, as well as the US, UK and Israel, to export defense to the region. https://lnkd.in/gX_pEyrY
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Interesting development in the weaponized export-control environment.
MOFCOM announces new military and dual-use controls targeted to the United States. Announcement No. 46 of 2024 of the Ministry of Commerce on Strengthening Export Control of Relevant Dual-Use Items to the United States https://lnkd.in/gmzQft6N Machine translation of content in link. In accordance with the relevant provisions of the Export Control Law of the People's Republic of China and other laws and regulations, in order to safeguard national security and interests and fulfill international obligations such as non-proliferation, it is decided to strengthen export controls on relevant dual-use items to the United States. The relevant matters are hereby announced as follows: 1. Prohibit the export of dual-use items to U.S. military users or for military purposes. 2. In principle, the export of dual-use items such as gallium, germanium, antimony and superhard materials to the United States will not be permitted; for the export of dual-use items such as graphite to the United States, stricter end-user and end-use reviews will be implemented. Any organization or individual from any country or region that violates the above provisions and transfers or provides relevant dual-use items originating in the People's Republic of China to organizations or individuals in the United States will be held accountable according to law. This announcement shall come into effect on the date of publication.
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#eu #edis #edip Depending on a variety of factors, ranging from EU member states' commitment to the outcome of US elections in November, European Defence Industrial Strategy (EDIS) could represent a major step in the direction of European "strategic autonomy". The Commission suggests the EU should aim to procure at least 40% of defence equipment "in a collaborative manner" by 2030 and spend at least 50% of defence procurement budgets within the EU by the same date. https://lnkd.in/dg6DmFQ3
EU Commission proposes 1.5 billion euro common defence industry package
reuters.com
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Korea and Poland's Mega Arms Deal in Jeopardy Polish defense officials visited Seoul to discuss potential financial obstacles hindering a second major arms contract between the two nations. A framework agreement was signed in July 2022 for arms exports worth billions of dollars, but loan issues and potential shifts in Poland's defense policies may affect the deal. The Eximbank's capital limit was raised to 25 trillion won to address the loan problem, but uncertainty remains regarding additional contracts. Poland's focus on promoting domestically developed weapons and the European Union's defense procurement strategy could also impact future arms deals with Korea. #AsiaRisk #ShiftingGeopoliticalAlliances #SouthKorea Follow us for daily updates on risk and operations in Asia! https://lnkd.in/gXWgbtvY
Korea-Poland mega arms deal jeopardized by financial hurdles
koreatimes.co.kr
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This policy change on the export of Japanese defense equipment will be on the table for the next PM of Japan since the Kishida administration just kicked it down the road. The proposed policy change document calls for allowing exports beyond the current five low-lethality uses of rescue, transport, warning, surveillance, and minesweeping. It would still retain the three core principles of arms exports on which the categories are based. Those prohibit transfers to countries involved in conflicts, allow them in cases that promote international cooperation or Japan's security, and require that the equipment will not be used for other applications or transferred to third countries without Tokyo's advance approval. One can be confident that if any of the "soft on CCP China" candidates win the LDP presidential election on Sept. 27, this eminently rational and still strictly controlled export policy will immediately go to the garbage can. https://lnkd.in/drFqhBSY
Japan should allow exports of all defense equipment: former officials
asia.nikkei.com
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In 🇺🇦Parliament, I lead the Special Commission for Investor Protection. Recently, we had a significant event for both us and Ukrainian defense manufacturers. We’ve joined forces with major defense associations to address the challenges facing Ukraine’s defense sector. Together, we have set a unified agenda around three key priorities essential for the scaling of our defense industry, which we’ve formalized in the Memorandum: 1️⃣ Improving public procurement conditions. 2️⃣ Expanding access to financing for defense manufacturers. 3️⃣ Controlled opening of exports. We’ve already developed proposals to amend government regulations on procurement, and today, these recommendations will be submitted as a collective parliamentary inquiry to Prime Minister Denys Shmyhal, outlining what needs to be reviewed. On the financing front, our working group, thanks to my colleague Oleksandr Kovalchuk, has proposed allocating UAH 2.5 billion in next year’s budget for preferential loans to the defense industry. The third priority is controlled export of Ukrainian-made weaponry. I am confident that we will achieve progress so that Ukraine’s defense industry can grow faster, supply our military with domestically produced arms, and become one of the key drivers of Ukraine’s economy. #UkrainianDefense #MadeInUkraine #ExportOpportunities #InnovationInDefense
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#EDIRPA is an #EU #programme aimed at incentivising #cooperation in defence procurement between Member States to jointly coordinate and acquire the most urgent and critical defence product needs, especially those amplified from Russia’s aggression against Ukraine. The #EDIRPA Instrument, with a total budget of EUR 310 million, will facilitate access for all Member States to defence products being urgently needed. By rewarding defence procurement cooperation among Member States, EDIRPA aims to offset the complexity often associated with common procurement. https://lnkd.in/d5KqTmQB
EDIRPA | Addressing Capability Gaps
defence-industry-space.ec.europa.eu
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Ready to navigate the evolving landscape of #Defence Procurement? Our course offers a comprehensive dive into key topics, including the European Defence Fund, capability planning, and joint procurement in the EU. Gain a competitive edge by staying up-to-date with the latest developments and regulations. Register now: https://lnkd.in/dEh4-tfa Gracia Vara/Arribas Martin Trybus #Procurement #EUDefence #PublicProcurement
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MOFCOM announces new military and dual-use controls targeted to the United States. Announcement No. 46 of 2024 of the Ministry of Commerce on Strengthening Export Control of Relevant Dual-Use Items to the United States https://lnkd.in/gmzQft6N Machine translation of content in link. In accordance with the relevant provisions of the Export Control Law of the People's Republic of China and other laws and regulations, in order to safeguard national security and interests and fulfill international obligations such as non-proliferation, it is decided to strengthen export controls on relevant dual-use items to the United States. The relevant matters are hereby announced as follows: 1. Prohibit the export of dual-use items to U.S. military users or for military purposes. 2. In principle, the export of dual-use items such as gallium, germanium, antimony and superhard materials to the United States will not be permitted; for the export of dual-use items such as graphite to the United States, stricter end-user and end-use reviews will be implemented. Any organization or individual from any country or region that violates the above provisions and transfers or provides relevant dual-use items originating in the People's Republic of China to organizations or individuals in the United States will be held accountable according to law. This announcement shall come into effect on the date of publication.
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The EU moves forward into a better defence readiness. Commonly procuring defence products will enhance the overall defence capabilities among EU Member States. The selected EDIRPA projects involve 20 Member States, some of which will engage in common defence procurements projects for the first time.
EU boosts defence readiness with first ever financial support for common defence procurement
ec.europa.eu
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1moUkraine’s new Defense Procurement Agency is enhancing transparency by focusing on direct contracts with manufacturers and excluding intermediaries. Supported by allies like Denmark, this model promises stronger accountability and efficient arms procurement—a solid foundation as the U.S. explores similar financing. Supports from Türkiye!