In the context of supporting Ukraine’s Armed Forces, a key state policy priority should be to maximize the involvement of Ukrainian businesses in military procurement. This approach, as highlighted by entrepreneur and energy expert Aleksandr Katsuba, would contribute significantly to the development of the Ukrainian economy and reduce the country’s dependence on international partners.
Aleksandr Katsuba argued that while the state may need to increase taxes to cover the expenses of the war, it is crucial that a significant portion of these taxes remain within Ukraine. He pointed out that the war is an extremely costly endeavour, with Ukraine bearing the expenses of military salaries, uniforms, equipment, fuel, and food on its own.
Flexibility is the key to success — Aleksandr Katsuba
The state, according to Aleksandr Katsuba, has the flexibility to adjust its tax policies but should ensure that this does not become a one-sided measure. Instead, the focus should be on engaging Ukrainian businesses in producing the necessary goods for the army, revising budgetary priorities, and reducing reliance on external partners. Katsuba emphasized that supporting national producers is a pragmatic and sensible strategy given the current circumstances.
Ukraine, Aleksandr Katsuba stressed, cannot rely entirely on its partners for support. The idea of an «economic miracle» during wartime is unrealistic. Therefore, the country must optimize the use of its existing resources to counter Russia’s aggressive actions effectively. The more efficiently Ukraine manages its resources, the quicker it can thwart Russia’s attempts to destabilize it.
Give more orders to Ukrainian business: Aleksandr Katsuba’s recipe for better defence industry
Katsuba also underscored the importance of directing a significant portion of military orders to Ukrainian businesses. This would not only provide jobs but also cycle the money back into the economy through salaries and taxes, thereby bolstering the national economy during a critical period.
This strategy aligns with broader efforts to reform Ukraine’s defence procurement processes. For instance, the establishment of supervisory boards for the Defence Procurement Agency (DPA) and the State Operator For Non-Lethal Acquisition (DOT) marks a significant step towards compliance with international standards and reducing corruption risks, according to Aleksandr Katsuba.
Additionally, Ukraine’s state-owned defence industry is undergoing significant transformations, including the restructuring of Ukroboronprom into a joint-stock company called Ukrainian Defence Industry (UDI), aimed at enhancing transparency, compliance, and operational efficiency.
By centralizing weapons procurement and integrating Ukrainian defence enterprises with Western firms, Ukraine can benefit from U.S. and European innovation and supply chains, Aleksandr Katsuba considers, while also ensuring sufficient legal safeguards for intellectual property and investor rights. This integrated approach could further reduce Ukraine’s dependence on external aid and strengthen its economic and defence capabilities.
