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The official stressed the importance of conducting an international audit, primarily a financial one, of Ukroboronprom.
The bills have been submitted to the Verkhovna Rada of Ukraine that are set to enhance cooperation between defense industry players, reform defense-related procurement, lift the ban on corporatization, and subsequently allow privatizing part of defense companies, according to First Deputy Prime Minister Stepan Kubiv.
The official recalled that in 2014, Ukraine had not been ready for Russia's armed aggression, annexation of Crimea, and the beginning of the actual war in the east of the country, Censor.net reports.
"A painful military blow Russia delivered forced Ukraine to change the philosophy and approaches to a strategy to increase its own defense capabilities. That's because a strong, well-armed and trained army ensures national security in wartime and becomes a powerful lever for maintaining peace in peacetime," Kubiv noted.
On April 24, he says, the Cabinet of Ministers at its meeting authorized the Ministry of Economic Development and Trade to perform the function of a central executive body for the country's defense industry. "This is no easy task because the openness and transparency of management of the military-industrial complex should be combined with protection of industrial secrets, strategic documents, and military information, in particular, from enemy intelligence and industrial espionage, especially dangerous amid hybrid war," said he.
The First Deputy Prime Minister stressed that the government’s decision logically continued the economy ministry's efforts taken 2016 to 2018. "In particular, we ensured the creation of a production line for Vilkha high-precision weapons, which allows us to talk of the mass production start, as well as a line for the production of solid rocket fuel. Together with the interior ministry, we launched a production line for 9/18 and 9/19 caliber cartridges, thus fully covering the demand of Ukraine's law enforcers. Also, there is a contract for the creation of capacities for the production of a project Neptun cruise missiles, armored combat vehicles, and radar equipment, as well as the restoration of ammunition testing grounds," Kubiv said.
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The official added that major steps were made to establish interstate cooperation in the defense industry, including to ensure the conduct of joint exercises for Army personnel and commanders with U.S. and Canada instructors and international experts, in particular, in the framework of a program launched at the Yavoriv testing ground in Lviv region.
"Together with Ukroboronprom Concern, for the first time in Ukraine's industrial history, we launched a state program to support production of armaments and military equipment critical for our defenses. It is now the second year the program has been operating. And we also launched an extremely complex system for the execution of the state defense order to raise the pace of providing the Armed Forces of Ukraine with the latest and repaired equipment samples," added Kubiv.
According to him, the reform of the legislation is now on the agenda. "A draft law has been developed and submitted to the Verkhovna Rada, which allows improving cooperation in the defense industry through the creation of joint ventures, bills on reforming public procurement in the defense sector, as well as bills on lifting the ban on corporatization and, subsequently, privatization of a part of defense enterprises. Of course, this will happen only after a broad public and expert discussion of these important initiatives has been held," said the government official.
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He stressed the importance of conducting an international audit, primarily a financial one, of Ukroboronprom. "The reboot of Ukroboronprom's Supervisory Board also requires attention," Kubiv added.
The First Deputy PM believes coordination of efforts of the Government, President and Parliament should be strengthened regarding legislative changes required regarding the implementation of decisions already taken, including ensuring the fulfillment of existing and future defense-related initiatives of the economy ministry.
"We have already created the prerequisites and opportunities for combining state and private capital, experience, and skills. Achievements of the Ukrainian aviation industry and rocket production are the best promotion of Ukrainian defense industry products worldwide, new jobs at Ukrainian defense enterprises, decent wages, innovation development, and, most importantly, higher level of national security. As 'The Art of War' advises, one should not hope that the enemy doesn't come – one must be ready to confront him," Kubiv concluded.