Ukroboronprom CEO should be replaced, head of supervisory board says

Seven candidates for the top post in Ukraine's defense giant have already been selected.

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Newly appointed chairman of the supervisory board of Ukroboronprom State Concern, Aivaras Abromavicius, believes the company's reform is possible only after its top manager is replaced.

Speaking with Censor.net, Abromavicius said that CEO Pavlo Bukin needs to go due to lack of efficiency in his performance.

Also the supervisory board chief suggests that Bukin is bound by some "old obligations" and that he has lost control over enterprises that are part of the Concern.

Among issues of concern, Abromavicius named the "lack of cooperation between those companies, their low productivity, a huge problem with debts, poor interaction with other important stakeholders, and a complete lack of new, breakthrough projects," said Abromavicius.

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The official says recruiters have already selected seven candidates for the top post, three of whom are ready to work in a new team.

"The new team is a group of well-known top managers with diverse experience in mechanical engineering, aviation, finance, and personnel management. All took part in successful transformations of unreformed structures – in private businesses, Prozorro, economy ministry, and Ukrgazvydobuvannia. These leaders were selected on the principle that they shall have no conflict of interest no business in the defense and security sector, and that none of their relatives shall be involved in this sector," Abromavicius emphasized.

Earlier media reports suggested that Prime Minister Volodymyr Groysman submitted to President Volodymyr Zelensky a proposal to appoint Oleksiy Tymofeyev as Ukroboronprom CEO.

Prior to this, Tymofeyev worked as chairman of the board of Smart Holding, owned by Vadym Novinsky. He was also a top manager at Geo Alliance owned by Viktor Pinchuk, worked at Ukrgazvydobuvannia, and was a member of the board of Naftogaz of Ukraine.

According to Abromavichus, Ukroboronprom's main goal is the timely delivery of high-quality weapons to the Armed Forces of Ukraine. At the same time, it is necessary to increase exports and make Ukroboronprom a modern company.

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"I look at the transformation of other state-owned enterprises, including those whose reform I myself initiated as economy minister, and each time I see that the transformation in these companies is possible only after a change of senior staff occurs," said Abromavicius.

The chairman of the supervisory board also reported on Ukroboronprom's export potential.

"In exports, we set an ambitious goal – to grow fivefold by 2025. We want to export products worth $2 billion annually. The most promising area is aircraft manufacturing, which we have not actually had in the last few years, including due to sabotage by those responsible for the area. It's also rocket production, where several very successful contracts have been recently signed. Where we know that we have a competitive advantage in world markets, we need to apply our best resources," said Abromavicius.

As UNIAN reported earlier, Aivaras Abromavicius, who previously headed the Ministry of Economic Development and Trade of Ukraine, on July 11, 2019, came to the helm of the supervisory board of Ukroboronprom.

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Ukroboronprom was established in 2010 with the aim of ensuring the effective functioning and management of companies engaged in development, manufacture, sale, repair, modernization, and disposal of weapons, military and special equipment and ammunition, and involved in military-technical cooperation.

The concern includes more than a hundred enterprises of Ukraine's defense industry.

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