Photo from UNIAN
Enterprises that are part of Ukraine's state-owned defense giant Ukroboronprom will be restructured and should undergo the process of corporatization, Deputy Secretary of the National Security and Defense Council (NSDC) Oleh Hladkovskiy said during a conference on the development of the military-industrial complex of Ukraine.
"Within the framework of the military-industrial reform, an actual direction is to restructure enterprises which are the members of Ukroboronprom and corporatize these companies in line with the international standards," Hladkovskiy said.
He added that as part of the reform, sectoral clusters for the production of arms and military equipment should be set up within the Concern.
Read alsoCabinet seeks to increase Ukroboronprom's Supervisory Board to 10-12 membersAs UNIAN reported earlier, Ukroboronprom CEO Roman Romanov pointed out that only half of the companies of Ukroboronprom reported profits for the first nine months of 2016. According to him, the company intended to eliminate six loss-making enterprises. Moreover, Romanov said that underfunding of Ukroboronprom on the state defense order for 2016 would amount to nearly UAH 1 billion, which would lead to a production drop and possible layoffs.
UNIAN memo. State-run Ukroboronprom Concern was established in 2010 to ensure effective operations and management of state-owned business entities that develop, manufacture, sell, repair, modernize and scrap weapons, military and special equipment and ammunition, and participate in military and technical cooperation. The concern incorporates over a hundred enterprises of Ukraine's defense industry.