Ukroboronprom rolls back efforts to withdraw Ukrspecexport from under its control

A newly appointed CEO of Ukraine's state-run Ukroboronprom concern, Aivaras Abromavičius, has issued an order to approve the new edition of the charter of SE Ukrspecexport, which is part of Ukroboronprom and Ukraine's main exporter of all types of weapons and military equipment, to eliminate the possibility of the latter's withdrawal from under the Concern's control.

On August 19, 2019, Ukroboronprom's former management made amendments to Ukrspecexport's charter, giving the enterprise inappropriate authority to manage other special exporting companies that became dependent on personnel and financial matters, as well as their work strategy, reorganization and liquidation. In addition, the concern's leverage on Ukrspecexport's activities was significantly reduced as well, the concern's press service said on September 27.

In addition, the previous version of Ukrspecexport's charter provided for a change in the type of legal entity from public to a private one, which posed risk of withdrawing company management from under the action of the law on prevention of corruption. The legal analysis by the Independent Defense Anti-Corruption Committee also confirmed the concern's position regarding the risks concealed in Ukrspecexport's charter.

"Now all these changes have been canceled by the order of the concern's new management as harmful to the interests of the state and Ukroboronprom," the press service said.

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As UNIAN reported earlier, the newly appointed management of Ukroboronprom had initiated internal probe into activities of their predecessors.

This was preceded by media reports that the then CEO of Ukroboronprom, Pavlo Bukin, ordered to make amendments to Ukrspecexport's charter, which significantly limited the concern's authority to manage special exporting companies.

UNIAN memo. Ukraine's state-run Ukroboronprom concern was established in 2010 to ensure the effective operation and management of state-run economic entities involved in the development, manufacture, sale, repair, modernization and disposal of weapons, military and special equipment, and ammunition. Ukroboronprom incorporates about 140 enterprises of Ukraine's military industrial complex.