Finding Suitable Radars Doesn’t Mean Ukraine Will Get Them

Let us consider a likely scenario.

A Ukrainian military unit needs a radar that can detect aerial targets. The threat is obvious, a foreign equipment is suitable, a supplier is identified, they have the funds so what could go wrong?

International delivery regulations – especially for military or dual use goods such as radar – can hold up or even prevent the military unit getting what it needs, even when both parties think everything is settled.

The cause is neither the buyer’s ability to pay nor the seller’s willingness to deliver. The issue lies elsewhere such as, incorrect classification of the product, export and import procedures are incorrect, inadequate documentation preparation, failure to properly identify the end user.

international transaction always involves clearly defined export-control rules, permits and responsibilities for both parties, with penalties for violations. If they are not, it is simply impossible to address the question of transportation. That is why military and dual-use goods cannot be treated simply as goods.

If an inexperienced buyer starts dealing with these issues only after the seller says that the shipment is ready for transportation, a great deal of time can be lost, while the buyer may also face significant unforeseen costs.

Defining what’s being bought

For an ordinary procurement specialist, it may be enough to know the product name, model, specifications and price. But when it comes to defense-sector goods, this is not enough. The same type of equipment can have a completely different regulatory status depending on its specifications, configuration, intended use and country of origin. This can apply to virtually everything: from communications systems, sensors and radars to unmanned systems and their components.

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A competent (or well-informed) buyer’s first question should not be “When can you ship it?” but “Can this product be shipped at all?” And this needs to be answered way before the parties finalize the terms of the deal.

How does this happen in practice?

A manufacturer says that the product is available and ready for shipment. The buyer then establishes the transport supplier, agrees on a shipping date and plans customs clearance. As well as taking time there are also expenses for consultation.

At this stage, it may turn out that additional export permits are required, and the time needed to obtain them was not included in the original delivery schedule. Then the problems arise: penalties, “downtime,” breaches of contractual terms and so on.

Everything seems to be in place, but there is no actual delivery.

That is why this process should not be seen as a formality, but one of the first necessities that can help save time, money and, ultimately, nerves, while also making sure that the equipment needed to perform a combat mission arrives on time.

Dual-Use Is Not About Simplicity

Dual-use goods can involve further complications. They are often perceived as just civilian. Or something between “civilian and military.” It’s often assumed that if a product has a civilian purpose, it should be easier to purchase and import, but if it has a military use it will still be subject to export control.

In fact such goods are often subject to specific and more complex international and national rules governing their transfer. Therefore, when a Ukrainian buyer receives a commercial offer, it must establish what rules apply and whether the product can legally be supplied to Ukraine. And, of course, this should be done before signing the contract.

A Practical Example

Let us take radars, needed for the early detection of aerial targets that violate Ukrainian airspace, and attack its people and infrastructure. The information is then passed to air defense forces, which work to neutralize the threat.

The international market offers effective solutions, and manufacturers are ready to work with Kyiv’s military customers. But is it enough for such a radar to have good technical specifications and an acceptable price? No.

When organizing such a purchase and delivery, it is necessary to determine the configuration according to the needs of a particular military unit. Then it is necessary to consider on which platform it can be installed, who will train military personnel to use it effectively, and how it can be integrated into the broader air defense network. It’s also necessary to consider whether upgrades and technical maintenance will be required in the future.

As discussed previously the process is a much longer and more complicated combination of negotiations, adjustments to commercial proposals and equipment configuration than simply following the principle of “find transportation – load – deliver – unload.”

And once all these stages have been agreed upon, logistics can be addressed. Transportation is an easy fix – a supplier can be found within a day. The best route can be defined quickly as can preparations to avoid getting stuck at the border or facing “downtime” while waiting for documents that had not been correctly prepared earlier.

The Ukrainian market itself also presents quite a complex regulatory environment. An “interesting” feature of it is that some rules can change while work is already underway. Therefore, although not very often, even a well-calculated international contract can sometimes face a new requirement that did not exist at the time the agreement was signed.

For the buyer, this means only one thing: a percentage of funds should be included in the cost of such a transaction to cover possible losses arising from these risks.

Learning not only buying technology

Simply finding a product and a supplier is no longer enough. Ukraine’s defense environment, which lives and develops according to the requirements of war and the battlefield, brings together expertise in the technology itself, international trade, export control, Ukrainian legislation and logistics.

Today, Ukraine is doing a great deal to develop its own military and defense technologies, localize production and help Ukrainian companies enter international markets. This is also necessary for the development of Ukraine’s defense industry. However, there is another side to the issue: the ability of our companies to work professionally with foreign technologies and foreign manufacturers.

Here, the issue is rather about reputation and about having a face of our own that can attract foreign miltech companies to cooperate, enter into joint projects and other partnership areas.

Attractiveness equals professionalism.

This is what will both allow Ukrainian miltech companies to sell, and Ukraine to purchase foreign technologies, but to build long-term cooperation.

From the very beginning, this process should be handled professionally and to protect individual reputations – from the first email inquiry to the moment when the radar enters combat duty.

The views expressed in this opinion article are the author’s and not necessarily those of Kyiv Post.

Taras Shevchenko, CEO of Global Saling