Automatically translated version. May contain inaccuracies compared to the original.
🔈 Accounts receivable of foreign entities to the Ministry of Defense have reached 472,6 billion UAH. Due to a lack of funding for legal services, the state may irretrievably lose the ability to recover part of these funds.
This is stated in the analysis of fiscal risks to the budget for 2027 by the Accounting Chamber. In particular, because there are no appropriations for the procurement of legal services, Ukraine may miss statute-of-limitation deadlines on claims against a number of foreign entities, including at the Swiss Arbitration Center. If these legal services are not procured in time, the state will lose the opportunity to return to the budget: over 232,1 million USD (together with additional claims and accrual of 5% per annum since March 2022), 155,7 million EUR (including court costs of hundreds of thousands of euros), 51 647 Swiss francs, and 535 189 UAH.
The funding shortfall for purchasing legal representation services for 62 cases in 2026 is about 1 million UAH, the Ministry of Finance calculated.
The absence of this funding will deprive the budget of significant revenues, may lead to termination of cooperation with foreign legal advisors with whom contracts are already concluded (and changing contractors will require additional time), and will also negatively affect Ukraine’s standing, complicating the attraction of financing in the future.
The volume of overdue accounts receivable of the MoD is increasing year by year. Thus, on 1 January 2024 it amounted to 39,6 billion UAH; on 1 January 2025 it was 45 billion UAH.
Accounts receivable refers to suppliers’ debt to the Ministry of Defense for undelivered goods or services not provided on time, for which the ministry has already paid.
The Ministry of Finance reported risks to recovering accounts receivable against the backdrop of the president-announced shortfall in funding for the Defense Forces in 2026, which is about 27 billion USD.
💬 ABleaks_bot
💕 Join