Oschadbank will contribute to the implementation of the President of Ukraine's “Drone Line” project: bank guarantees were provided for UAV manufacturers

As part of the implementation of the agreement between the governments of the Netherlands and Ukraine on cooperation in the field of security and defense, according to which the purchase of a specific quantity of products for the Defense Forces of Ukraine from Ukrainian manufacturers of unmanned aerial vehicles (UAVs) is provided, Oschad provided bank guarantees under contracts totaling 837 million euros.

According to the agreement, Ukrainian UAV manufacturers will conclude direct contracts with the government of the Netherlands.

Oschadbank, in turn, through the bank guarantee instrument, under which the Dutch government is the beneficiary, will ensure the possibility of Ukrainian manufacturers receiving partial advance payment for contracts. Currently, Oschadbank has already issued guarantees for four companies that were selected for the implementation of the agreement by the Ministry of Defense of Ukraine and the government of the Netherlands.

 “The mechanism developed and agreed upon with the Dutch government to use bank guarantees to fulfill contracts for the production of security and defense-related products through direct financing by our international partners is another way to use the banking system’s potential to improve the country's defense capabilities. Other partner countries that are ready to participate in the financing of the Drone Line project, initiated by the President of Ukraine to expand the use of unmanned systems in the Defense Forces of Ukraine, will now be able to join in a transparent and understandable way that takes into account the interests of all participants in the process.

Thus, together with the preferential lending program and the tool for providing state portfolio guarantees for private defense industry manufacturers, in the development of which Oschadbank took part, as well as the practice of banking consortia, this mechanism will become another way to stimulate the growth of the volume of production of domestic products in the field of security and defense,” noted Yurii Katsion, Deputy Chairman of the Board of Oschadbank, responsible for corporate business. 

“One of the main tasks of the Ministry of Defense of Ukraine is to increase funding for Ukrainian arms manufacturers. For this, we are strengthening cooperation with Ukrainian banks and international partners.

We are grateful to the government of the Netherlands for the decision to purchase Ukrainian drones for our army. This is a significant investment in our advantage on the battlefield.

Guarantees from Oschadbank will help speed up the implementation of contracts and the supply of drones to units involved in the Drone Line initiative of the President of Ukraine. We will scale this successful experience with other partners so that even more Ukrainian drones will be at the front as soon as possible. We are building a force that will stop the aggressor and bring long-term peace,” emphasized Denys Shmyhal, Minister of Defense of Ukraine.

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Oschadbank initiated the first consortium to finance defense industry enterprises in the amount of UAH 2.8 billion, in which Ukrgasbank and FUIB also took part.

The total volume of credit agreements concluded by Oschadbank for financing defense industry enterprises of all forms of ownership during the period of the full-scale war reaches UAH 17.5 billion.