You're reading: Ukroboronprom says Defense Ministry blocks production of APCs

Ukraine’s Defense Ministry acceptance office No. 85 at the state-run Ukroboronprom concern’s Kharkiv-based Morozov Design Bureau is continuing to block the production of new BTR-4 armored personnel carriers (APC) for the Armed Forces of Ukraine using NATO-standard steel purchased in the European Union, Ukroboronprom’s press service has said.

The press service said the Defense Ministry is of the opinion that the chemical composition of the steel from Finland for the APCs (Miilux Protection 500) contains more sulfur and phosphorous than provided for in GOST standards [technical standards adopted by the Council for Standardization, Metrology and Certification of the Commonwealth of Independent States (CIS)]. Therefore, it cannot be used for the APCs.

Ukroboronprom is publishing official protocols of tests and documents confirming the characteristics of the European armor, with the clarification that private Ukrainian arms manufactures today produce the Kazak and Varta armored vehicles using the Finnish steel, which is also used in the production of Ukraine’s coastal anti-ship missile complex Neptun (Neptune).

The press service said “despite the fact that there are no logical arguments from representatives of the military government customer and that the European armor is actively and permanently used in Ukrainian armored vehicles of other manufacturers, the costs and rates of defense production from European armor objectively meet the interests of the defense industry and the government customer.”

The Finnish steel is delivered to the customer in a hardened form, in any quantity and in all necessary thicknesses. Delivery is provided within 14-45 days and is not subject to VAT.

“At the same time, manufacture of a Ukrainian-made steel case of the ’71’ brand requires 100% prepayment and VAT payment. It is smelted in large quantities of 240 tonnes. Several months pass from the moment of the order to the delivery. Then the ’71’ steel needs to be hardened. Only LKMZ (Lozova Forging Mechanical Plant) can do that and it takes several months,” the press service said, adding that the production of BTR-4 frames from the Finnish steel at the Malyshev plant costs Hr 770,000 to Hr 870,000 less (depending on the exchange rate).

“This means the army can receive more APCs at lower costs,” Ukroboronprom said.