The Ukrainian government has issued a resolution on the establishment ofJSC Ukrainian Defense Industry, which is to replace the existing Ukroboronprom state defense concern, the Cabinet reported on May 4.
Ukroboronprom officials said this was one of the key steps towards reforming the state sector of the defense industry complex, a report from the Cabinet reads.
“Ukroboronprom will be transformed from a state concern into a joint-stock company, which will be fully owned by the state and will operate in accordance with modern corporate governance standards,” reads the report.
“The concern will be replaced by a modern high-tech defense company that will centrally manage the industry’s leading enterprises in armored vehicles, aircraft construction and aircraft repair, naval and radar systems, and high-precision weapons and ammunition.”
Ukroboronprom said the reform opens the way to the transfer of the latest technologies, the creation of joint ventures with foreign partners, the attraction of investments, deepened public and private partnership, which will significantly increase the overall efficiency of the state sector of Ukraine’s defense industry.
In parallel, Ukraine continues to transform state and public defense enterprises into business entities (limited liability companies and joint-stock companies).
To date, 28 defense enterprises have already been reformed, while another 16 are being transformed.“This does not affect their production activities and they continue to provide the needs of Ukraine’s security and defense forces in weapons and military equipment,” the concern said.
The Cabinet passed the relevant resolution, No. 441, on March 21, 2023.
In December 2021, the government decided to transform Ukroboronprom into a joint-stock company and agreed to reorganize its 43 strategic participating enterprises into state-owned business entities.
This was preceded by a parliamentary bill on reforming the state concern passed in July 2021 and signed by the president in October 2021.