With the purpose of studying the practice of state regulation of offset activities and working over of normative and legal base that regulates the relations in the sphere of state defense
procurement of the Czech Republic, on October 26 to October 28 the Ukrainian
delegation visited Prague to participate in the bilateral consultations with
the representatives of the Ministry of Industry and Commerce of the Czech
Republic. The Ukrainian delegation consisted of Yurii Oleksandrovych Mityaev,
Deputy Director of the Department of Defense and Safety Economy, Director of
the Department of Special Programs and Military-Technical Cooperation, and
Yulia Vyacheslavivna Malyshenko, Director of the Department of Economic
Cooperation with NATO.
During the bilateral Ukrainian-Czech offset
consulting, the Ukrainian delegation informed the representatives of the
Ministry of Industry and Commerce of the Czech
Republic about the situation with the
application of offset schemes in Ukraine. Namely, it was spoken
about the need to establish legislative bases in Ukraine to work in the direction of
the offset schemes implementation. The Ukrainian delegation noted that the Ministry of Economy of Ukraine initiated making amendments in the Law of Ukraine “On State Defense Procurement” in the part of regulation of the process of procurement of products, works and services of defense purposes by import. After the mentioned Law enters into force, the procedure of entering compensation (offset) agreements shall be developed.
Within the frameworks of the specified event, the representatives of the Ministry of Industry and Commerce of the Czech Republic familiarized the Ukrainian delegation with the normative acts and guiding documents on offset activity valid in the Czech Republic; the procedure of preparation, entering into and enforcement of offset agreements (contracts) with military products exporters.
The director of the Department of Industry, Research and Development, M.Stykha, familiarized the Ukrainian delegation with the
authorities, staff and tasks of the Offset Commission – a consulting and
advisory agency of the Ministry of Industry and Commerce of the Czech Republic,
the competence of which includes matters of analysis of offset offers from foreign
suppliers, preparation of offset agreements, coordination of activities of
state agencies during the enforcement of offset agreements and monitoring of
enforcement of concluded offset agreement.
Z. Khrustovski, the specialist of the department of strategy of industrial
and offset activity, made a presentation on the legislative regulation of
offset activity of the Czech
Republic. During his
speech, Mr. Khrustovski notified the members of the Ukrainian delegation about
the changes of offset legislation in the part of increase of the contract price
for purchase of equipment and services from a foreign supplier from 500 million
crowns to 1 billion crowns, and the contract with a domestic contractor – from
250 million crowns to 500 million crowns.
Also, Mr. Khrustovski paid attention to the
peculiarities of preparation of offset contracts by the Czech Republic, namely, the Czech Republic
stopped using the offset multiplier due to the subjective approach to the
evaluation of contract value and established the minimal sanctions for failure
to enforce the contract in the amount of 5% of the total contract value.
After the presentations, the
representatives of the Ministry of Economy of Ukraine, Yu. Mityaev and Yu. Malyshenko
offered a series of matters for discussions: the number of offset contracts
entered into between the Czech Republic and foreign companies, the course of
enforcement of these contracts, analysis of completed contract and matters
related to the practical part of preparation of offset contracts – authorities
and duties of the state agencies which act as parties to such contracts, as
well as the role of the Offset Commission in the monitoring of contract
enforcement. Exhaustive answers were obtained for all questions.
After the event, the parties exchanged
informational and analytical materials and templates of normative and legal
acts valid in Ukraine and
the Czech Republic and regulating the specified
sphere of activity.
After discussion of the agenda, the parties also reached an agreement on having further consultations dedicated to the exchange of experience between Ukraine and the Czech Republic on utilization of military property unsuitable for further use or storage.
The efficiency of bilateral Ukrainian-Czech offset consulting has been confirmed by the importance of studying the experience of the Czech Republic on application of compensation (offset) schemes at the procurement of arming and military machinery, as well as the opportunities of its introduction and application in Ukraine.