Unique role of Ukrainian charities in defense procurement

BLUF: Primer on major players in Ukrainian charitable defense procurement space. Details on Ukraine's new domestic howitzer model, the towed Bohdana-B; and the 300 changes TerMIT made to its ground drones due to battlefield feedback.

THE BIG STORY: Ukrainian charities in defense procurement: 

A number of Ukrainian charities purchase and distribute military equipment – a unique feature of Ukraine’s civil sector. 

”Charitable foundations were the first to start purchasing Mavic drones on a large scale… They were the first to actively work on communication solutions. Charitable foundations, so to speak, are setting the trend,” said Anton Tabur, a defense consultant at the Ukrainian firm Data Driven.

There is no formal figure on how many charities are involved in military procurement, but it likely runs into the hundreds.

Come Back Alive was the first Ukrainian charity to obtain a license to buy lethal weapons abroad. Others, such as the Prytula Foundation, supply the Ukrainian army with armored vehicles, drones and other equipment, but not lethal weapons.

Razom for Ukraine, which was founded in the United States, does not provide lethal weaponry. But they play a vital role in supplying non-lethal equipment such as radio communications gear, and in teaching tactical medicine to mobilized soldiers.

Defense procurement is not a typical charitable mission. But with the survival of Ukraine at stake, civil society has adapted, said Prytula Foundation spokesperson Maria Pysarenko. 

According to figures published on their websites, in just the month of September, Come Back Alive was able to raise more than $5.2 million, while Prytula Foundation took in more than $3 million.

Come Back Alive is second only to the Ukrainian military itself in the purchase of lethal weapons. For example, with the Pure Anger project, the fund bought 100 CheyTAC sniper rifles and 100,000 rounds of .375 caliber ammunition. It also supplied the Ukrainian army with machine guns, mortars, grenade launchers, long-range UAVs and more.

Meanwhile, the Prytula Foundation is working on supplying the military in five main non-lethal categories:

• UAVs

• Optics

• Communications equipment

• Electronic warfare

• Tactical medicine

All three charities are looking for Ukrainian-made products first. In order to supply soldiers with communication, for example, Razom for Ukraine purchases products from HIMERA, a Ukrainian company that produces secured comms systems resistant to electronic warfare.

If a Ukrainian-made option isn’t available, then they look for alternatives near Ukraine, gradually moving to intermediary companies that might have stock available.

Ukrainian charity funds are in constant contact with soldiers, which convey their equipment needs in a variety of ways:

• Applications on the funds’ websites;

• Both the Ukrainian military and charitable funds analyze trends from brigades to prepare and buy more needed equipment;

• Direct work with military personnel.

“Simply put, we aim to make things more efficient,” explained Nataliya Kolomiets of Come Back Alive.

The Prytula Foundation, meanwhile, works in ‘fire teams’ to supply urgent needs at the roughest points along the frontline, with a logistic hub in Dnipro. The core principle of procurement is to purchase only based on requests from military units.

For the Prytula Foundation, the main obstacle to their work is a complicated bureaucracy, but with experience and time, processing documents has become easier. Recently, they bought 1,000 night vision optics – the PVS-14 – and for that, they had to get a permit from the U.S. State Department.

“I believe that in the post-war period, charitable foundations will have significant expertise that they can share with the [government],” said Tabur.

This trend seems to have already started: just this past week, Taras Chmut, head of Come Back Alive, became part of the supervisory board of the MoD procurement agencies – the Defense Procurement Agency and the State Logistics Operator.

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BUSINESS LUNCH TOPICS: What our reporting shows!

1. What we know about Ukraine’s latest domestic howitzer model, by Sebastien Roblin. 

   
   A recent video posted by Ukraine’s defense ministry shows a new version of the 2S22 Bohdana self-propelled howitzer, designed to shoot NATO-standard 155-millimeter shells — this time without wheels. 

   
   The towed Bohdana reportedly costs half or two-thirds the estimated $2-3 million of a self-propelled Bohdana. While towed systems may seem a downgrade from self-propelled guns able to quickly move after firing to evade counter-battery fire, that tactic risks exposing vehicles when under drone surveillance. By contrast, towed artillery can remain better camouflaged and entrenched at static positions — and may be harder for small FPV drones to disable.

   
   Ukraine began 2022 with just one Bohdana prototype at the Kramatorsk Machine Plant, which narrowly avoided destruction. Now Zelensky claims up to 20 per month are being built. 

   
   The towed Bohdana-B, first reported in development late in 2023, is apparently matched with the 2A36 split-rail carriage of the 10-ton Soviet 2A36 Giatsint-B (“Hyacinth”) long-range howitzer, though with gun shield removed and with visible changes to the barrel, fire control and recoil-absorption systems. 

   
   While Ukraine retains 2A36s in service, these use unique 152-millimeter shells likely in lower supply. Thus some 2A36s might be profitably converted into Bohdana-Bs, which have a nearly 40 percent greater maximum range of 26 miles using regular shells. 

2. Robot manufacturer Tencore makes 300+ changes to land drone due to battlefield innovation :

   
   Three Ukrainians assembled their first ground-based robotic platforms at the outset of the full-scale invasion. Ultimately creating what’s become known as the TerMIT logistics robot, these small machines have become essential for the military to transport supplies, evacuate the wounded, and mount weapons.

   
   Termit unmanned platforms are primarily purchased by charitable foundations and military units, but state contracts could be a possibility in the future. 

Tencore quickly expanded its team to 60 people and now plans to double that number. The team has already delivered hundreds of their robots to front lines. Through battlefield innovation, the TerMIT model has undergone more than 300 design changes.

“The military would receive the product and tell us about its weaknesses and what needed improvement. We would consult with our engineers, and they would modify various components, change material grades, adjust thickness, electronics and software,” explained Maksym, in an interview with Counteroffensive.Pro.

3. Ukrainian engineers modify gun turrets to counter Shahed-136 drones:
   
   To avoid using scarce anti-aircraft missiles, engineers have been exploring alternative defensive measures. The ZAVOD group of companies has developed a new machine gun turret specifically designed for mobile air defense units. These turrets can be mounted on pickup trucks, stationary positions, and tripods. Their key feature is enhanced stability during firing. 

   
   "We based the design on the stabilization principles used in aircraft weaponry. This allowed us to increase the accuracy of the machine guns nearly tenfold," a representative from the company told Counteroffensive.Pro.

Shaheds typically attack at night, and the thermal sights on machine guns have a limited field of view, making it difficult for operators to track the drone and the necessary portion of sky ahead for aiming.

To address this issue, ZAVOD's engineers developed their own targeting system: "The operator holds the thermal sight, while the system calculates the target's position. The operator then sees a red dot on the screen, which they manually align with the turret," he explained.

Currently, more than 200 of these turrets are in operation in the Ukrainian army. However, mobile units equipped with machine guns cannot fully secure the airspace. According to the spokesperson, over the past six months, there has been an increase in incidents where Russian kamikaze drones reach altitudes beyond the effective range of the machine guns.

4. State of play for export control: Last Friday, Ukrainian defense firms held a huddle with the head of Ukraine’s export control agency (read our coverage of this issue in an exclusive interview with Oleksandr Pavlichenko). 

   
   The topic of discussion was export controls on military and dual-use goods. Participants in the discussion say that there remains a lot of work to be done.

   
   “Companies are consistently denied export permits,” explains Director-General of Tech Force in UA Kateryna Mykhalko, who was on the call. Loosening export restrictions will let domestic companies sell their products abroad and expand their production lines, they argue.
   
   Pavlichenko told us that 31 percent of applications are denied. 
   
   WHAT WE’RE HEARING: For many defense startups struggling with the process, it feels like a de facto ban, even as Pavlichenko says that there is no prohibition and is encouraging companies to apply for permits.

In Collaboration with Centre of United Actions – Ukrainian orders/legislation we’re following: 

Draft Law No. 11278 of May 20, 2024
Status: Under consideration by the Verkhovna Rada Committee on Finance, Tax, and Customs Policy
Initiated by: Cabinet of Ministers of Ukraine
Proposal: The bill aims to strengthen the export control system and restore reporting requirements for entities involved in international transfers of military and dual-use goods.

Why It Matters:
1. Security: Prevents the transfer of weapons, dual-use technologies, and other goods that could be used for the development of weapons of mass destruction or for terrorist purposes.
2. International Relations: The implementation of the bill will demonstrate that Ukraine is a responsible member of the international community.
3. Control: The law allows tracking where Ukrainian goods are being sent and how they are used.

ON THE MOVE: Professional movement, promotions and industry news.

Know someone in the defense tech space who has made a professional move? Drop us a line at [email protected]! 

• Kusti Salm will join the supervisory board at Milrem Robotics. He is also CEO of Frankenburg Technologies and former permanent secretary of the Estonian Ministry of Defense.

• Denys Sviatokum was elected as a chairman of the board in the recently created group: ‘Ukrainian dual-use technology cluster.’

• IronNet appointed retired rear admiral Mike Hewitt as lead independent director on the company’s board.A message from our sponsor:

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30 SECOND ELEVATOR PITCH:

Norda Dynamics develops software for drone automation. It allows drones to fly without any connection via radio or radio range. 

“We are now looking for $1 million to develop full autonomy, improved detection, improved reference targets, optical navigation, and to expand our team.” said Dmytro Vovchuk, a co-founder. 

The company has been scaling up over the last few months. With their system, they have integrated with about 30 manufacturers.

MUST READS:Norway has established the post of military attaché in Kyiv, who will facilitate cooperation between professional communities and industry in defense innovation and industrial development.

• Russia’s Kalashnikov will start production of 5.45 mm AM-17 rifles in 2025 to replace the AKS-74U.

• Australian company DefendTex has launched its first FPV-drone, Vengeance. A limited number has already been shipped to Ukraine as a part of the Drone Coalition initiative.

• Unknown drones swarmed around US military bases for 17 days. They flew near a base with F-22 Raptor jet fighters and the biggest naval port in Norfolk, Va.

• Ukroboronprom’s revenues increased by 50% compared to 2023. From January to September, the state-owned manufacturer earned 83.1 billion UAH, compared to 55.4 billion last year. 

• Ukrainian drone company Wild Hornets announced serial production of anti-air drones to strike down Russian Shahed kamikaze drones.

• Ukraine managed to transfer an AN-178-100R plane to Poland. This is a flight model of a plane that was to be produced and developed for the Ukrainian Air Force.

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