Abstract
The study is devoted to the problem of financial regulation of the defense industry and the provision of troops, as the escalation of the military conflict in eastern Ukraine has revealed shortcomings in this area. A comparative analysis of NATO and Ukraine’s defense spending was conducted and differences in the cost structure were identified. The tendency of Ukraine’s defense spending to gradually approach the structure of NATO defense spending is pointed out, but the insufficient level of this approach is also taken into account. The analysis allowed to identify problematic issues and inconsistencies in the financial regulation of the defense industry. The state of export of defense equipment and technologies as a possible source of financing of defense enterprises is analyzed. The existence of two opposite trends in the financial regulation of military logistics has been identified: both an increase in funding in absolute terms and a reduction in the share of the total amount for the implementation of the unified logistics system of the State Armed Forces Development Program. The developed mathematical model of supply of military units is suitable for use in information systems of logistical support of troops.
Highlights
The Russian Federation has concentrated 28 battalion tactical groups with a total number of about 100 thousand servicemen, up to 1100 tanks, up to 2600 armored personnel carriers, up to 1100 artillery systems near the borders of Ukraine [1]
The study found that the available capacity of enterprises of the military-industrial complex is not enough for the simultaneous restoration of damaged military equipment, modernization, creation and serial production of new models for the Armed Forces of Ukraine to replace technically, technologically and morally obsolete military equipment that Ukraine got after the collapse of the USSR
The required level of R&D funding in Ukraine has not been achieved to date. It should be noted the inadequate amount of funding for the preparation of the production of new models of military equipment by the Ministry of Economic Development of Ukraine [18, 21,22,23,24]. Problematic issues in this area, in particular, are: shortcomings in planning and financial regulation in the defense production system, which lead to inconsistencies in the simultaneous fulfillment of R&D and mass production within one enterprise, resulting in reduced R&D quality and/or increased cost of military equipment; significant funds advanced by the state for these purposes are not allocated by producers on a separate account, which allows the funds to be redistributed to other, non-targeted, cost items, which significantly reduces the efficiency of financial resources
Summary
The Russian Federation has concentrated 28 battalion tactical groups with a total number of about 100 thousand servicemen, up to 1100 tanks, up to 2600 armored personnel carriers, up to 1100 artillery systems near the borders of Ukraine [1]. Russia exercised the transfer of forces for further large-scale offensive operations [2] This allows Russia to launch offensive operations in any direction without additional mobilization. According to the military doctrine of the Russian Federation, the lack of manpower in large-scale aggression in the absence of a coherent front line and considerable depth raids should be compensated by the high mobility of troops [2]. This level of threat requires significant efforts from Ukraine to form a reliable supply of troops and efficient logistics [3,4,5,6,7]
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
