• Ukraine expands e-Points to cover more components such as comms/optics, navigation/power, controllers
  • Ukraine–Bulgaria to cooperate on UAS/counter-UAS/ammo, potentially via EU SAFE funding
  • Combat operations continue around the so-called Fortress Belt cities of Slovyansk and Kramatorsk

Ukraine’s Ministry of Defence (MoD) has announced that its innovative e-Points system, which allows individual units to gain control of elements of their own defence procurement needs, will be expanded to include additional critical components.

Revealed in a 30 March release, the Ukraine MoD said the list of components that have been added to the e-Points market include communications equipment and optical sensors, signal repeaters, navigation, power, and payload release systems, and other items.

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Adding such components enabled for “greater optional flexibility” on the battlefields of eastern Ukraine, said Mykhailo Fedorov, Ukraine’s new Minister of Defence and former head of digital transformation.

The e-Points system rewards units with a digital currency that they are then able to ‘spend’ with Ukraine’s defence SME industrial base, providing key enablers such as drones and electronic warfare systems to frontline units. Points are gained through operational successes, such as confirmed strikes against Russian forces, and credited to a unit’s individual account.

In doing this, defence procurement is able to remove administrative layers that would add time to the process, delaying delivery of equipment to units.

However, the procurement of large-scale items or lethal equipment, such as ammunition, is still managed directly by the MoD.

The Ukraine MoD also announced it is introducing advance payments of up to 70% for products procured using e-Points, which it says will enable manufacturers to scale up production and address frontline requirements more rapidly.

“We are building a system where the military units determine their needs and strengthen their capabilities for specific mission requirements,” Fedorov said.

Fedorov also recently revealed that e-Points would also now be awarded to sniper teams who can verify engagement, as well as short-range air defence, including mobile fire groups and army aviation.

In addition, a new ‘points multiplier’ has been activated where units can demonstrate “innovative applications” of uncrewed systems against Russian forces.

The current average delivery timeframe has already been shortened to approximately 10 days, a point raised last year during Army Technology’s conversations with Ukraine Government officials.

To date, the value of equipment acquired by Ukrainian forces via the e-Points system has reached around $460m, according to official figures.

Ukraine eyes SAFE funding

Elsewhere, Ukraine and Bulgaria have agreed to improve cooperation in the joint production of UAS, counter-UAS system, and ammunition, all of which are critically important to the Ukrainian Armed Forces.

According to the Ukraine MoD, cooperation may develop “both at the governmental level and between companies from the two countries”, it stated in a 31 March release.

Notably, discussion between the Minister of Defence of Bulgaria, Atanas Zapryanov, and Mykhailo Fedorov, also touched on potential cooperation within the EU’s SAFE defence finance initiative.

Ukraine is known to be seeking additional funding in order to acquire the necessary weapons and munitions needed to sustain operations against Russian forces, with President Volodymyr Zelenskyy stating recently that factories were running at 50% capacity due to a shortfall in funds.

Ukraine war: update

With Ukraine marking the four-year anniversary since Russia’s large-scale invasion in February 2022, combat operations continue across the east of the country, with both sides conducting extensive drone and missile strikes against targets behind the frontlines.

While operations continue, a Russian breakthrough is not expected in the year term, despite slow, tactical successes.

In its 30 March war update, the US-based Institute for the Study of War reported Russian State Duma Defense Committee Deputy Chairperson Alexei Zhuravlyov stated on 29 March that the ongoing fight for Kostyantynivka itself is an important milestone but not ”decisive”, indicating Russia should focus on seizing Slovyansk and Kramatorsk to achieve victory.  

Last week, Russia claimed it had seized the village of Brusivka, located northeast of Slovyansk.