Defense Ministry says Ballistics does not meet booking criteria: details
31 October 2024 10:51
The Ministry of Defense of Ukraine has responded to the statements of the Ballistics company that they have not been able to get reservations for their employees for more than 4 months. The ministry claims that this is how it should be – the company has not earned the status of “critical”. This was reported by "Komersant Ukrainian" citing Ekonomichna Pravda, which has a response from the Defense Ministry.
On Tuesday, the founder of Ballistics, a company that manufactures protective equipment for the Ukrainian military, Oleksandr Dovgyi, said that the company has not been able to get the necessary reservation for its employees from the Ministry of Defense of Ukraine for more than four months.
“The company, whose products are used by hundreds of thousands of defenders, has no support, while workers in secondary industries – tarot readers, sushi makers and others – receive reservations without any obstacles,”
– he wrote on Facebook.
In his opinion, this greatly complicates Ballistics’ operations, as the company will not be able to fulfill its obligations if it lacks staff. According to Dovgy, the situation is also complicated by the fact that he, as the owner of the company, has been in service since February 24, 2022, and several top managers have been drafted into the Armed Forces.
“Last year, one was drafted, this year another, and recently another received a call-up,”
– he said.
Dovgy noted that the company sent an appeal to the Ministry of Defense on June 24, 2024, expecting a response within 10 days, but they have been waiting for more than four months. At the same time, the entrepreneur suggests that the company’s financial performance meets the criteria for granting the status of a “critically important enterprise for the economy.”
“For your understanding, we not only produce equipment for the military, but also actively help the defense forces. Our assistance has already reached about UAH 80 million. We employ well over 100 people, the average salary at the company is more than 1.5 times higher than the average in Ukraine, and we pay taxes regularly. In just 9 months of 2024, we paid UAH 55,360,278 in taxes and fees to the budget,”
– he wrote.
However, these figures apparently did not convince the government. The Ministry of Defense of Ukraine explained that their commission found no grounds for granting the company the right to reserve employees, as Ballistics does not meet the established criteria for granting the status of a critical enterprise. The main reasons for the refusal were:
- Absence of a state contract with the Ministry of Defense or the State Defense Transit (DOT).
- Lack of an approved state order where Balistika would act as a co-executor.
- Lack of relevant requests from representatives of the Armed Forces of Ukraine.
- The company belongs to the private sector, outside the management of the Ministry of Defense.
At the same time, as noted by the Ministry of Defense, the agency “highly appreciates the contribution that private defense companies make to the defense of the state.”
At the same time, there are a number of dubious enterprises, institutions and organizations that have been granted critical importance status by the government. For example, football clubs, non-governmental organizations, and the Mobile Circus of Ukraine are now considered “critical”. As of mid-July, more than 700 companies were recognized as critical to the economy.
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Criteria for enterprises that are critical to the economy
Cabinet of Ministers Resolution No. 76 defines the criteria for recognizing an enterprise as critical to the functioning of the economy and ensuring the livelihoods of the population during a special period:
- the total amount of taxes paid exceeds the equivalent of EUR 1.5 million;
- the amount of foreign currency revenues exceeds the equivalent of EUR 32 million;
- the company is of strategic importance for the economy and security of the state according to the list;
- the company is important for a sector of the national economy or for meeting the needs of the territorial community;
- no arrears in the payment of a single contribution to the obligatory state social insurance;
- the average salary of the insured employees at the enterprise for the last calendar quarter is not less than the average salary in the region for the fourth quarter of 2021;
- the company is a resident of Diia City.
An enterprise is recognized as critical if it meets at least three criteria. Such enterprises can book 50% of their employees, or more “in case of a justified need”.
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“Ballistics
Ballistics was founded in 2014 as a manufacturer of military equipment. Its main products are armor and tactical equipment for the Armed Forces of Ukraine and other law enforcement agencies.
According to the company, it produces or is capable of producing
- special equipment to order, both with and without ballistic protection;
- ballistic protection for EW and EW devices, radar/antenna devices; motor vehicles and ground drones;
- camouflage, both with and without ballistic protection elements;
- special systems for carrying valuable cargo, such as digital devices, remote control stations; drones of various types and purposes.
The company considers the Kolchan magazine pouch, the Chersel unloading system, and the M3 Pro tile carrier to be its top developments.
The company is one of the top five manufacturers of ballistic protection and tactical equipment and has a good reputation among Ukrainian military personnel.
In February, the company’s office was searched by the police.
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