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1. Russian Company Drake LLC’s Procurements for JSC Alabuga’s Military Drone Projects - JSC Alabuga’s Weaponization of Commercial Drones for Military Use in Ukraine

Author:
David Albright and Spencer Faragasso
Publication Date:
07-2024
Content Type:
Special Report
Institution:
Institute for Security and International Studies (ISIS)
Abstract:
With the onset of Russia’s invasion of Ukraine, JSC Alabuga shifted from centering on hosting domestic and international civilian manufacturing facilities at its Special Economic Zone (SEZ) to direct military production of military drones, in particular the Shahed 136 kamikaze drone under a supply and franchise contract with Iran. This shift has necessitated the large-scale procurement of a variety of different types of goods abroad. One of JSC Alabuga’s important procurement arms has been Drake LLC, aka Dreik LLC, which contracts with Alabuga Development Company, JSC Alabuga’s main construction and production arm. Drake’s role in outfitting military industries was recognized on February 23, 2024, when it was sanctioned by the United States. However, its precise dealings which warranted this designation have received little public scrutiny. The case of Drake exposes a part of Alabuga’s drone production supply chain and its broader interest in military drones in addition to the Shahed 136 drone. This case study reveals how Alabuga Development Company purchased in early 2023 via Drake and a third party in Kazakhstan, DRONE.kz, up to 30 Dragonfish drones from Autel Robotics, a major Chinese drone manufacturer with a strong U.S. presence, for modification at Alabuga for military use in Ukraine. The planned changes included extending the drone’s range, strengthening its ability to defeat jamming from enemy electronic warfare systems, and/or attaching a universal delivery system for a variety of ordnance, such as grenades and video-guided rocket propelled grenades.
Topic:
Weapons, Drones, Manufacturing, Procurement, Russia-Ukraine War, and Dual Use Items
Political Geography:
Russia, Europe, and Ukraine

2. Patchwork procurement? How to bridge parallel initiatives in EU joint defence procurement

Author:
Cédric Lombaerts and Lucrezia Sala
Publication Date:
07-2023
Content Type:
Policy Brief
Institution:
Centre for European Policy Studies (CEPS)
Abstract:
The EU’s defence-industrial base was conceived during peacetime and, because of the ensuing market fragmentation, does not seem fit for purpose to deal with wartime. In an attempt to remedy this, the EU launched several parallel joint defence procurement initiatives (EDIRPA, EDIP, the three-track approach under the European Peace Facility). Between these initiatives, it is easy to lose sight of the forest in the trees of joint procurement. How do these parallel tracks of procurement tie in together? Are they not fragmenting collaborative procurement efforts even further? This CEPS Policy Brief sheds clarity on the interplay between these initiatives and suggests four pragmatic paths towards an overarching joint defence procurement framework while playing into the most salient deadlocks in joint defence procurement today.
Topic:
Defense Policy, European Union, and Procurement
Political Geography:
Europe

3. European Defence: Time to Act

Author:
Alessandro Azzoni
Publication Date:
07-2022
Content Type:
Commentary and Analysis
Institution:
Istituto Affari Internazionali
Abstract:
The Russian invasion of Ukraine on 24 February 2022 has renewed momentum on the long-standing debate on EU defence, convincing many that the time for concrete steps to meet this ambition – the building of a united European defence grounded in its own strategic and technological autonomy – has finally come. Talks have been ongoing for some 68 years – that is, since the French parliament sunk the European Defence Community project back in 1954. The manifest broadening of public consensus for the idea of European defence is not enough. Thorough technical assessments will be needed to identify priorities and strike an acceptable balance between reducing duplications, optimising expenses and the inevitable transfer of some elements of strategic and operational “sovereignty” in the military domain.
Topic:
Defense Policy, European Union, Defense Industry, Procurement, and Common Security and Defence Policy (CSDP)
Political Geography:
Europe

4. Examining the Impact of E-Procurement in Ukraine

Author:
Artur Kovalchuk, Charles Kenny, and Mallika Snyder
Publication Date:
06-2019
Content Type:
Working Paper
Institution:
Center for Global Development (CGD)
Abstract:
This paper examines the impact of Ukraine’s ambitious procurement reform on outcomes amongst a set of procurements that used competitive tendering. The ProZorro system placed all of the country’s government procurement online, introduced an auction approach as the default procurement method, and extended transparency. The reform was introduced with a dramatic increase in the proportion of government procurement that was conducted competitively. This paper examines the impact of ProZorro and reform on contracts that were procured competitively both prior to and after the introduction of the new system. It finds some evidence of impact of the new system on increasing the number of bidders, cost savings, and reduced contracting times.
Topic:
Governance, Reform, Procurement, and Contracts
Political Geography:
Europe, Ukraine, and Eastern Europe

5. Accountability or not? Managing of public funds in Kosovo Security Sector

Author:
Skender Perteshi
Publication Date:
02-2014
Content Type:
Policy Brief
Institution:
Kosovar Centre for Security Studies (KCSS)
Abstract:
This study aims to analyze financial accountability of Kosovo security sector and advocate for its continuous enhancement. It is focused mainly on the current state of affairs and the trends in this sector. Therefore, the period of 2010-2013 serves as reference point for chronological perspective of this study. Whereas, the scope of this study is restricted to financial management, procurement and auditing of the following institutions: Ministry of Internal Affairs, Kosovo Police, Kosovo Ministry of Kosovo Security Force and Kosovo Security Force. Due to the institutional modalities and the lack of transparency as provided by the law, the research team has intentionally excluded from this study the Kosovo Intelligence Agency, even though it considers that the absence of financial transparency of this institution is in contradiction with the principles of accountability of public funds. The analysis reveals that general legal framework on financial management is also applicable to the security sector. Regardless of the existence of such legal framework, several weaknesses, may be detrimental to public funds as result of loopholes. One of the key dimensions in financial control is internal auditing, which is considered to be in its infancy. Audit units of the security institutions employs very small number of staff compared to the number of staff and volume of work in the financial sector. Therefore, the number of audits remains relatively small targeting only some of the most important areas. One of the main weaknesses of these institutions is the lack of solid written plans. There is also lack of efficiency in executing the expenses as defined in the agenda. This makes the supervision of expenses and financial management in security sector more problematic. Following the same lines, public procurement management is at a concerning stage. Identified problems are mainly related to the evaluation process, lack of clarity of specifications during the application process, as well as many other shortcomings in the supervision of public procurement in the security sector. On the other hand, out of all complaints taken by the Public Procurement Review Body, it 50% of complaints filed by various economic operators have resulted to be grounded on evidence by returning the tendering process to either re-evaluation or re-tendering.
Topic:
Security, Accountability, Procurement, and Public Finance
Political Geography:
Europe, Kosovo, and Balkans