The Ministry of Defense has signed its first contracts under state guarantees with a private company.

The Ministry of Defense has signed its first contracts under state guarantees with a Ukrainian private company. This was reported by the press service of the ministry.

The total value of the contracts amounts to 4.4 billion UAH, with the company set to manufacture and deliver 100 specialized armored combat vehicles and 100 armored evacuation vehicles.

The agreements stipulate that the manufacturer will involve credit funds to fulfill the contract, while the state will provide corresponding guarantees for loan repayment from the state budget.

For security reasons, the details of the contracts are not disclosed.

"These contracts open a new chapter in the cooperation between the Ministry of Defense and the private sector," commented Deputy Minister of Defense Dmitry Klimekov.

Contracts under state guarantees represent a distinct direction in the reform of defense procurement and aim to establish new conditions for partnership with businesses, which is critically important for meeting the needs of the Armed Forces of Ukraine, the ministry notes.