Ukroboronprom to be reorganized into nine holdings, deputy PM says

Deputy Prime Minister, Minister for Strategic Industries of Ukraine Oleh Urusky has said over 60 enterprises of the Ukroboronprom state concern will be reorganized into nine holding companies.

"Everyone understands Ukroboronprom needs to be reformed: some of the enterprises that have lost contact with the defense industry must be put up for sale by the State Property Fund, the rest will form the basis of nine holding companies in the following areas: nine of them will become part of the Defense Systems of Ukraine holding, and three will join the Aerospace Systems holding," the concern's press service quoted Urusky as saying during the presentation of Ukroboronprom Acting Head Ihor Fomenko.

Deputy Prime Minister Urusky's comment

According to the deputy prime minister, "there are no scuffles between Ukroboronprom and the Ministry for Strategic Industries," which is responsible for the state policy on defense industry.

"We should see the new face of the Ukrainian defense industry in a year and a half. In this context, the process of transforming state-owned enterprises into joint-stock companies will take a long time. Thus, over 60 enterprises will undergo corporatization. I hope we will launch the process without waiting until the relevant bill is adopted, which will become an additional factor in the implementation of this reform," Urusky said.

Background

In August, Urusky announced the transformation of the Ukroboronprom state concern and the change of its management.

On October 6, Ukrainian President Volodymyr Zelensky dismissed Aivaras Abromaviсius from the post of Ukroboronprom CEO.

At the same time, Fomenko was appointed defense giant's acting chief.

UNIAN memo

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