Logistics and financial regulation of the defense-industrial complex in the system of troops

¹ Odesa Military Academy, Department of Military Support, 10 Fontanska road Street, Odesa, Ukraine, 65009
² Odesa Military Academy, Rocket and Artillery Weapon Department, 10 Fontanska road Street, Odesa, Ukraine, 65009

^* Corresponding author: Lisovenko@email.ua

Abstract

The study is devoted to the problem of financial regulation of the defense industry and the provision of troops, as the escalation of the military conflict in eastern Ukraine has revealed shortcomings in this area. A comparative analysis of NATO and Ukraine’s defense spending was conducted and differences in the cost structure were identified. The tendency of Ukraine’s defense spending to gradually approach the structure of NATO defense spending is pointed out, but the insufficient level of this approach is also taken into account. The analysis allowed to identify problematic issues and inconsistencies in the financial regulation of the defense industry. The state of export of defense equipment and technologies as a possible source of financing of defense enterprises is analyzed. The existence of two opposite trends in the financial regulation of military logistics has been identified: both an increase in funding in absolute terms and a reduction in the share of the total amount for the implementation of the unified logistics system of the State Armed Forces Development Program. The developed mathematical model of supply of military units is suitable for use in information systems of logistical support of troops.