Ukraine Withholding Russian Prepayments For Defense Orders

In the aftermath of the Crimean crisis, Ukraine will not refund Moscow for defense orders placed with Ukrainian arms makers.

Russia’s Deputy Prime Minister Dmitry Rogozin Thursday said, the Ukrainian partners “are late with deliveries of [ready-made] products [and] are not returning the advance payments.”

"Note that Ukraine hasn't paid and is no longer going to pay for the orders placed with these enterprises," he was quoted as saying.

Rogozin stressed, referring to the conditions under which Russia and Crimea’s defense industries have to work, that Western sanctions against Moscow will only become tougher, according to Ria Novosti.

"The rate of execution of these orders is not impressive,” the deputy prime minister said. He added that the reason for the delays was the lagging pace of a number of federal agencies, which has resulted in a lack of the necessary documentation for the Crimean enterprises to recommence production of arms and military equipment.

Following Crimea’s reunification with Russia, Ukraine’s monopoly arms maker Ukroboronprom has barred all exports of weaponry and military equipment to Russia, the report said.  Ukraine previously produced helicopter engines, aviation radar, missiles and other goods for Russia.