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10 major UOP changes in 3.5 years

10 major UOP changes in 3.5 years 10 major UOP changes in 3.5 years Over the past 3.5 years, UKROBORONPROM (UOP) has undergone radical changes, which became the foundation for the further development of the largest association of state enterprises of Ukraine’s defense industry. Over the past 3.5 years, UKROBORONPROM has been steadily changing under warfare conditions, adhering to transparency, introduction of NATO standards, the use of modern business governance models, engaging private enterprises, and transition from the repair of old Soviet military equipment to high-tech developments. This was reported by Roman Romanov during the meeting of UOP Supervisory Board, member of which - on UKROBORONPROM initiative - was appointed Anthony Tether – former head of the Defense Advanced Research Projects Agency (DARPA). Equipped Army UOP enterprises 100% fulfilled all State defense orders, having transferred armored vehicles, aircraft, helicopters, air defense systems, artillery systems, missile weapons and other armament samples to the military. Starting from 2014, Ukrainian Army received from UKROBORONPROM 18,615 units of military equipment and weapons, of which 6,025 - totally new and modernized samples. During intense fighting, UOP specialists worked directly in the ATO zone as part of the mobile maintenance crews, restoring military equipment, destroyed in battles. These maintenance crews repaired more than two thousand pieces of military equipment in the field conditions. Despite the limited resources and the ongoing war, over the years, UKROBORONPROM moved from repairing Soviet military equipment to development of new advanced models of weapons and military equipment. In recent years, AN-132D aircraft and UAV "Horlytsya" performed their first flights, missile system “Vil’kha” and cruising missile under "Neptune" project were tested, as well as dozens of other weapons, intended, first of all, for the Ukrainian Army. The Ukrainian Army began receiving high-precision anti-tank missiles "Stugna" and "Corsar", the most protected   armoured vehicles BTR-4, modernized combat helicopters and aircrafts. And if in 2014 the army received weapons, barely enough for one platoon, today UKROBORONPROM transferres military equipment in battalion sets. At UOP expense UOP share in the State Defense Orders, for all time amounts to 59.6%, according to which UOP enterprises received from the Ministry of Defense, the National Guard and other law enforcement agencies UAH 15.8 billion. At the same time, UOP enterprises  from 2014 paid taxes and fees to the budgets in the amount of 17.2 billion UAH. UKROBORONPROM itself, thanks to its economic activity, paid for each unit of armament, manufactured for Ukrainian military under the State Defense Order, while paying for all necessary materials, for water and light, paying wages and additionally transferring 1,4 billion UAH to the budgets. From losses to billions in profits Talking numbers. In 2014, UOP enterprises had 0.92 billion UAH of losses, and, according to operative data of 2017, the net profit of the UOP enterprises in 2017 amounted to 1.5 billion UAH. At the same time, net income in 2014 amounted to 16 billion UAH, in 2017 this figure has almost doubled to 28 billion UAH. And the average salary at all UOP enterprises increased almost three times and now amounts to UAH 9,018, which is 36% higher than the average for Ukraine. Economy driver Having turned from unprofitable enterprises to industrial leaders of their regions and budget-forming enterprises for cities, UOP enterprises became a true driver of the economy. While in the expenditure part of Ukraine’s budget there is no line with the word "Ukroboronprom", the UOP itself paid from 2014 to 2017 over 17.2 billion of taxes and fees to the budgets of all levels. Only 7 UKROBORONPROM enterprises of Mykolayiv region paid more than 2.5 bln taxes, and 5 enterprises of Kharkiv region - 1.8 bln. Even the newly launched enterprise "Electric Systems" – the one that released its first products in October 2017, already enriched budgets by 12.6 million UAH. Engaging private enterprises in import substitution program 2014 became the year of breaking powerful chains, which united the Ukrainian defense industry with Russia. The import substitution program, launched by UKROBORONPROM, relied on the capacity of hundreds of Ukrainian enterprises, not members of the State Concern; these enterprises supplied a wide range of components. Currently, 447 enterprises throughout Ukraine, of which 65-70% are small and medium-sized businesses, supply more than 4,5 thousand units of products and components, that are of vital importance for Ukraine's defense capability. In fact, import substitution program allowed UKROBORONPROM not only break dependence from the Russian Federation, but also attracted Ukrainian private business to work for Ukraine's defense capability. Radical transparency Two years before Prozzoro became obligatory, in 2014 UKROBORONPROM introduced e-procurement system at its enterprises. In fact, this system became the basis for Prozzoro. UOP is the first one among the industrial associations, having made procurement system transparent and open. This solution allowed UKROBORONPROM to save more than 1.4 billion UAH, 40+ thousand suppliers were registered and more than 96 thousand tenders were conducted. And for all this time, UKROBORONPROM has not classified any procurement. UOP Anti-corruption program In 2014, one of the main tasks for UOP headquarters was fighting corruption at UOP enterprises. In addition to transparent e-procurement, it was decided to create a special internal service that will collect materials on violations and inform the law enforcement agencies. Thanks to work of UOP internal service, since 2014, 185 materials on violations at UKROBORONPROM enterprises were collected for the total amount of UAH 950 million. All these materials were transferred to the Security Service of Ukraine, the Prosecutor's Office, the Ministry of Internal Affairs and other law enforcement agencies, becoming the basis for 42 criminal proceedings. At the same time, 28 heads of UOP enterprises were suspended from office, and another 70 officials were brought to disciplinary responsibility. The first international audit UKROBORONPROM will become the first state industrial association in the history of Ukraine that will undergo international audit, which is one of the main conditions for the large-scale transformation of the State Concern. Up to now, no one has attracted top-level world-class consulting companies under open transparent tenders. These measures will contribute to creating the most effective means for the development of the entire defense industry and for further Euro-Atlantic integration of the entire defense-industrial complex of Ukraine. This will allow to transparently and rationally evaluate all UKROBORONPROM assets, to develop a clear plan for corporatization UOP enterprises with the further possibility of creating effective production clusters. This will enable the State Concern to create transparent management structures, attract private investors and integrate the Ukrainian defense industry into the global system and market. NATO standards Since 2014, transition to NATO standards was the only vector for development of all UOP enterprises. As a result, weapons, adapted to Alliance criteria – primarily aviation and armored vehicles - are already being developed in Ukraine. UKROBORONPROM participates in NATO programs: from NIAG research and joining NSPA's supplier base, to obtaining NATO certificates: combat aircraft and helicopter modernization. Implementation of air transportation under the SALIS program takes a separate position in a number of joint programs. It is in recent years that UKROBORONPROM has consistently participated in joint developments with NATO member states, including creation of new battle tanks, military transport aircraft, artillery systems, surveillance and           reconnaissance, small arms and other weapons. Projects, that ten years ago seemed unreal today are implemented. New production and education For the first time in years of Ukraine's independence, UKROBORONPROM began to develop production facilities. Over the past 4 years, new technological lines, workshops have been opened, perhaps for the first time in Ukraine's independence, the country's defense complex has started to build muscle. Moreover, this year UKROBORONPROM launched a new enterprise - State Enterprise "Electric Systems", which will employ 2.5 thousand specialists and fill the budget of Ukraine with millions of tax deductions. At the same time, UKROBORONPROM and leading Ukrainian universities began expanding cooperation: students and teachers joined the process of development and production of armament. More than 9 thousand students had their practical training at UOP enterprises, of which more than 750 were employed. All these changes are the result of 80 thousandth UOP team - working at over 130 enterprises of the State Concern - implemented in the most terrible time of Ukraine's struggle against the aggressor country for its territorial integrity and its existence in general. UOP Supervisory Board approved the report of Roman Romanov, making a point that the enormous work was carried out by the ex-head of the State Concern and his team. "The changes are striking, we are grateful to Roman Romanov and his team for their work," said Mykhaylo Zhurovs’kyy, Chairman of UOP Supervisory Board. In turn, Anthony Tether also noted the tremendous UKROBORONPROM progress in 3.5 years.  

CONCERNING PUBLICATION IN NEW YORK TIMES AND MISLEADING INFORMATION

CONCERNING PUBLICATION IN NEW YORK TIMES AND MISLEADING INFORMATION CONCERNING PUBLICATION IN NEW YORK TIMES AND MISLEADING INFORMATION Due to the fact, that New York Times published about Ukroboronprom’s activities and since there is some information misleading, we would like to emphasize on the following. Dmytro Maksymov who was referred to by New York Times concerning aircraft manufacturing plant in Lviv, May 11, 2017 attempted to smuggle documents with level restricted access, and he was caught by Security Service of Ukraine and Police, who arrived to the place of the accident. Mr. Maksymov was fired due to systematic failure to fulfill his official duties. It is worth to highlight, that Dmytro Maksymov in late 2016 refused to go on business trip for audit of financial and economic activities particularly at State Enterprise “Liviv State Aviation Repair Plant”, and for this reason he got a reprimand. Concerning SE “Lviv State Aviation Repair Plant”, as it was previously mentioned, as a result of internal control of Ukroboronprom, in autumn 2017 the facts of violation and faults were determined in financial and economic activities, as well as possible abuse by top management of the company. Based on results of the official investigation, the director of the enterprise Oleksandr Kravchuk was brought to justice. Disclosed materials on the embezzlement in 2016-2017 by the officials of the State Enterprise "LSARP" of funds during the purchase of inventories in interrelated commercial structures (in total 5) - were passed to the General Prosecutor's Office, the NABU and the Security Service. As of now, law enforcement agencies do the investigation by open criminal proceedings. The fact of dismissal of Alexander Kravchuk from his position was filmed by the press office of Ukroboronprom and distributed by many Ukrainian media. In this regard, we must emphasize that because of the internal control measures of Ukroboronprom since 2014, 185 materials were passed to law enforcement agencies with signs of abuse and corruption at the enterprises of "Ukroboronprom". For them, 42 criminal proceedings were initiated. By managerial decisions, 28 managers of enterprises were dismissed, and another 70 officials were brought to disciplinary responsibility. The negligence of these facts and spreading misleading information on anti-corruption actions of "Ukroboronprom" is unacceptable.  

UOP Supervisory Board is finishing selecting candidate for the position of UOP Director General

UOP Supervisory Board is finishing selecting candidate for the position of UOP Director General UOP Supervisory Board is finishing selecting candidate for the position of UOP Director General Due to the fact that Roman Romanov's resignation letter was submitted at the end of 2017, and yesterday the President of Ukraine signed the decree, UKROBORONPROM (UOP) Supervisory Board is finishing the process of selecting a candidate for the President of Ukraine to appoint a new Director General. "I want to thank Roman Romanov, who is leaving this post. He had to work during the the most difficult years for our country: Dramatic transformations in the domestic defense sector took place during this time. Ukrainian defense industry in 2014 and today – it's like night and day. Paced work of the factories, implementation of the State Defense Order, successful implementation of the import substitution program, building missile shield and the latest developments - all of these create an integral system of positive changes, achieved by the team of Roman Romanov. It's a pity to lose a highly professional manager. There’s no doubt that Roman Romanov will receive cooperation offers from a number of domestic and foreign companies. Now the joint task of the UOP team is to continue the reforms and ensure the further growth of the State Concern. Openness, efficiency, and innovation are three key principles that should be laid in the basis of further progress of the domestic military-defense complex", - said Mykhaylo Zhurovs’kyy, Chairman of UOP Supervisory Board.  

STATEMENT OF UKROBORONPROM DIRECTOR GENERAL ROMAN ROMANOV

STATEMENT OF UKROBORONPROM DIRECTOR GENERAL ROMAN ROMANOV STATEMENT OF UKROBORONPROM DIRECTOR GENERAL ROMAN ROMANOV I made my decision to leave my post as the head of the SC “UkrOboronProm”. I wrote a resignation letter last year and I hope that the President of Ukraine Petro Poroshenko will support my decision. In order to immediately put aside a set of questions, I have to emphasize several important positions. We have won. By saying “we” I mean all 80 thousand UKROBORONPROM employees, who managed to transform the biggest defense union of Ukraine into an effective mechanism, which – in parlous times - supplied our defenders with armament that helped them to defend our country. We remember the year 2014: Ukrainian Army had no modern combat vehicles, no communications equipment, no drones. We remember that just 3.5 years ago we were reviving idle defense enterprises and repairing destroyed in battles military equipment directly in the ATO zone; transferring tanks - barely enough to cover the needs of several platoons. Today, the true assessment of 3,5 years of UKROBORONPROM's work is more than 16,000 units of armaments and military equipment, transferred to the Armed Forces of Ukraine, the National Guard, State Border Guard Service and other law enforcement agencies, in accordance with the State Defense Order, fulfilled 100%. Over 12.5 billion UAH of taxes paid to the budgets of all levels; while - within the framework of the State Defense Order - UKROBORONPROM received 11.7 billion UAH. We completely broke ties with the Russian military-industrial complex. The import substitution program was launched at full capacity, with almost 500 private enterprises throughout Ukraine, replacing the components from the Russian Federation. We reached agreements with the leading companies from the USA, Germany, Canada, Britain, Poland and many other countries. Some of them are already attracted to mutually beneficial cooperation and agreements with the rest of those will be announced in the near future. For the first time in the history of Ukraine, we launched a large-scale defense industry reform, creation of clusters and corporatization of enterprises. We introduced changes in the environment of a globally distorted information field and post-truth. We tested new armament samples, from armored vehicles to UAVs, designed in accordance with the NATO standards, instead of repairing Soviet military equipment. The "Missile Shield" program: a dozen of UOP enterprises are elaborating on the creation of high-precision long-range missiles. There are many other achievements that laid the foundation for systematic expansion of results for many years to come. Implementation of integrity, honesty and transparency policies is of key importance to me. And all of those we introduced in UKROBORONPROM. The Concern became the first state industrial union of Ukraine, having launched e-tendering system, which helped to save more than 1.4 billion UAH, starting in 2014. UKROBORONPROM received the Supervisory Board, under the supervision of the rector of the National Technical University of Ukraine "Kyiv Polytechnic Institute named after I. Sikorsky" Mykhaylo Zhurovs’kyy. On the initiative of UKROBORONPROM, Anthony Tether – former head of the Defense Advanced Research Projects Agency (DARPA) – was appointed as member of UOP  Supervisory Board. And I believe that together with UKROBORONPROM specialists, graduates of KMBS, MIM-Kyiv, Kyiv Polytechnic and many other leading universities of Ukraine, scientific thought, modern business models and advanced experience will allow us to move even faster. Throughout the years of my work at UKROBORONPROM, the media kept reminding me that I had come to the State Concern from business. It's true. And I believe that every man must devote certain period of his life to serve his country: Past 3.5 years were my service. I am grateful to each of the 80,000 employees of the SC "UkrOboronProm," who believed in country's defense industry revival. I am confident that my successor will continue this course. And I will smoothly hand over all the responsibilities, so that this transition in no way affects the efficiency of the work of the Concern. Our team gave a powerful impetus to the development of both the Ukrainian defense industry and the entire economy of the country. We understand how - in a couple of years - to create a defense industry that will ensure the independence and territorial integrity of any country. I am grateful to everyone who put their trust in us.  

UOP AVIATION CLUSTER 1.5 TIMES INCREASED NET PROFIT: 12 bln UAH in 2017

UOP AVIATION CLUSTER 1.5 TIMES INCREASED NET PROFIT: 12 bln UAH in 2017 UOP AVIATION CLUSTER 1.5 TIMES INCREASED NET PROFIT: 12 bln UAH in 2017 UOP Aviation cluster - created in summer 2016 - 1.5 times increased net profit. Real-time data from 20 enterprises - part of this production association - confirm this fact. In 2017, net income of this cluster amounted to more than 12 billion UAH, and the net profit amounted to 0.9 billion UAH, while in 2016 these indexes were at the level of UAH 8.2 billion and UAH 0.7 billion. At the same time, the average salary at the enterprises of UOP Aviation cluster amounts to 9,320 UAH, while average wage in Ukraine, according to data available, is about 6,850 UAH. The leader of UOP aviation cluster – according to 2017 results – is the SE “Antonov” that keeps increasing net income. In 2017, this index, according to operational data, amounted to UAH 5.9 billion UAH, which is 1.6 as much as the index of 2016. “Antonov” also increased net profit, which in 2017 amounted to 180 million UAH. Beginning in 2015, since it became the part of the SC “Ukroboronprom”, the leader of the aviation cluster keeps increasing its profitability by 4 times. At the same time, the average salary at the enterprise, providing about 10 thousand specialists with work, is UAH 9 034. And the top earners in this field are specialists of the State Enterprise "Lutsk Repair Plant"Motor "with the average salary of 13,108 UAH, which is almost half again as high as the average salary in Kyiv. The enterprise specializes in overhaul of engines for Ukrainian fighters; in 2017 the plant received net revenue of over one billion, almost twice as much as in 2016. And the profit of the company increased almost 5 times, amounting to 250 million UAH. 2017 became a year of UOP aviation cluster: two historical aircraft for Ukrainian aircraft manufacturing hit the sky – on March 31, 2017 – An-132D, and on November 8 – combat drone "Horlytsya". A large-scale work was carried out on the repair and modernization of aircraft and helicopters that Ukrainian Air Forces are operating, including fighter aviation.

DENYS GURAK ABOUT TRANSFORMATION, ATO EXPERIENCE AND COOPERATION WITH NATO – Jane’s Defence Weekly interview

DENYS GURAK ABOUT TRANSFORMATION, ATO EXPERIENCE AND COOPERATION WITH NATO –  Jane’s Defence Weekly interview DENYS GURAK ABOUT TRANSFORMATION, ATO EXPERIENCE AND COOPERATION WITH NATO – Jane’s Defence Weekly interview UkrOboronProm (UOP) aims to employ the knowledge it has gained from Ukraine’s conflict with Russia to provide advanced research and development (R&D) and break into the defence supply chains of NATO countries, according to its Deputy Director General for foreign economic activity, Denys Gurak. UOP is the state concern in Ukraine responsible for 130 separate defence holdings, including the Kharkov Morozov Design Bureau and Antonov, the company responsible for the An-124 freighter aircraft. The deputy director general emphasised that in the next five to 10 years he expects UOP to face many challenges. “Challenges are quite similar to opportunities; we are undergoing a transformation from the point of view of our assets, as well as our business model. Now the cornerstone of our strategy is to integrate ourselves into NATO/Western supply chains,” he told Jane’s . Gurak noted that implementing this strategy will require a complete transformation of UOP’s business model and stressed that the company must move its focus from users of Soviet-era equipment to become a key supplier for NATO member states. However, he added that “there are a lot of cases where UOP already modernises Soviet equipment to NATO standards”, pointing to its recent R&D efforts to develop the PT-17 main battle tank (MBT) in conjunction with Poland as an example. This project has involved upgrading the T-72 into a NATO-compatible tank, which the deputy director general described as “very relevant to Baltic states as well because of the costs and the problems associated with using big Western tanks in areas such as the Baltics”. Asked how UOP plans to break into Western markets, Gurak said, “We, of course, need to target traditional Western markets such as France, Germany, and the United Kingdom. We will start with production outsourcing as well as R&D outsourcing.” He added that a vital part of the company’s strategy will be to continue to “build trust in its key competitive advantages, advanced manufacturing capabilities, good cost base, as well as the company’s military engineering capability”. According to Gurak, UOP is uniquely placed among Western defence companies and those that provide equipment for NATO member states because Ukraine is one of the only European countries to have fought modern Russian weaponry. Highlighting the importance of this experience, he said, “NATO members have started studying the conflict in east Ukraine.... UOP already has experience and an understanding of the conflict and so can offer first-hand advice.” He suggested that the main challenge “is operating in a heavily denied area in terms of electronic warfare [EW]” and that “Russia is using much more EW that NATO countries and Ukraine is working with NATO members to study this”. “Ukraine has the same EW school as Russia and is more advanced in some areas,” Gurak added. “Knowing the peculiarities of the equipment and how it is used helps to design and develop equipment to combat it.” UOP has worked with the Ukrainian Ministry of Defence (MoD) to develop new methods for using artillery in densely populated areas, as well as specific tactics for countering heavily armoured vehicles with manportable anti-tank weapons. Ukrainian sources have revealed that special forces from NATO states have visited Ukraine to conduct training and to learn from Ukraine’s experience of warfare against Russian units. According to the deputy director general, this is all having a positive impact on UOP’s reputation among NATO allies. Despite the obvious negative consequences, according to Gurak the war in eastern Ukraine has had many benefits for the Ukrainian defence industry, which has been forced to adapt to the new circumstances. “Pre-2014 the defence industry in Ukraine was basically dormant; there was no strategy and no goals,” he explained. “We were acting on sporadic export orders in traditional markets such as north Africa or Asia.” However, since the start of the war more than 16,000 pieces of equipment have been supplied to the Ukrainian MoD by UOP, which Gurak noted has had the added technological benefit of being able to test its equipment against a considerable adversary. He pointed to the BTR-3DA infantry fighting vehicle as an example. “The equipment is used against a near-peer threat, rather than the weaker adversaries that NATO has faced in recent years,” he said. “As a result up to 200 engineering changes have been made to those APCs based on advice and communication from the users in very active combat operations.” Meanwhile, UOP has announced plans to open some of its stock up to private stakeholders: a development that is welcomed by Gurak. He noted that private defence companies in Ukraine, such as TechImpex and Praktika, provide healthy competition and possible technological partnerships that will benefit the country’s defence industry as a whole. In relation to UOP’s current position he said, “We are currently in the middle of an international audit and, once the assets have been structured into specific areas of production, it will be time to start offering shares.” The conflict in the Donbass region has certainly given the Ukrainian defence industry the impetus to adapt and grow. Among the products UOP is currently developing Gurak highlighted “missiles, such as ATGMs [anti-tank guided missiles] and soon 122 mm rounds for the Grad [multiple rocket launcher – MRL], and precision-guided 300 mm missiles for the Smerch [MRL]”. “Radio electronics is another big sector,” said Gurak. “We will hopefully be announcing [the marketing of new] EW systems, such as the 80K6T 3D radar, which was presented at the Kiev exhibition [in October 2017].” He also anticipates a greater presence for UOP in the air transport market. He noted that currently many NATO countries rely on the commercial fleet of An-124s operated out of Ukraine for strategic airlift capabilities, while a commercial Mi-26 heavylift helicopter from Ukraine has been used to provide emergency lift capability to NATO forces in Afghanistan. The deputy director general concluded that he believes these steps are just the beginning of UOP’s transformation, emphasising that there are many opportunities ahead and that he intends the company to become a prominent player in the West European defence market.

REGULAR MEETING OF THE EXPANDED COMMISSION ON "MYKOLAIV SHIPBUILDING PLANT" WAS HELD

REGULAR MEETING OF THE EXPANDED COMMISSION ON "MYKOLAIV SHIPBUILDING PLANT" WAS HELD REGULAR MEETING OF THE EXPANDED COMMISSION ON "MYKOLAIV SHIPBUILDING PLANT" WAS HELD The expanded commission regarding the SE “Mykolaiv Shipbuilding Plant” - Mykolayiv Plant management representatives, representatives of UKROBORONPROM, the Mykolayiv Regional State Administration, Ukrainian Navy, as well as representatives of labor unions - reviewed the state of the enterprise and further ways to solve problems. In the judgement of all the participants, further fate of the GM cruiser is the key factor in solving enterprise wage arrears. Keeping GM cruiser since the end of 2014 is being carried out at the expense of the enterprise, as the budget does not allocate funds to the Ministry of Defense of Ukraine to pay for these works. Thus, the budget debt to the State Enterprise "Mykolaiv Shipbuilding Plant" now amounts to more than 80 million UAH, while the accumulated wage arrears amount to 65+ million UAH. Since 2016, the SE "Mykolaiv Shipbuilding Plant keeps waiting for the decision of the Cabinet of Ministers on the further fate of the GM cruiser. "We are manufacturers, we do what the customer orders. This can be either demilitarization of the cruiser or finishing building. "There is no way out of this situation without immediate decision of the Cabinet of Ministers concearning the GM cruiser," – emphasized Valeriy Kalashnikov, the acting director of Mykolaiv Shipbuilding Plant. "We are also interested in adoption of the rule. If the cruiser is demilitarized, its weapons will enhance the existing warships" said Andriy Polishchuk, Deputy Commander of the Ukrainian Navy. We must note that the issue of maintaining GM cruiser is of key importance for Ukraine. This is the ship of 11,500 tons and a 186.4 meters length, if the work on its maintenance is not carried out, the vessel might sink and that will lead to an environmental disaster, pollution of the waters of Inhul, Southern Bug and the Black Sea. In turn, the cost of raising the ship of this class and eliminating the consequences of the disaster will cost hundreds of millions of hryvnias. At the same time, the SE “Mykolaiv Shipbuilding Plant” continues works on ensuring break-even activity. Meetings with representatives of the Naval Forces of Ukraine have already been held; they considered the possibility of repairing the warships at the Mykolaiv Shipbuilding Plant. Also, during the meeting, it was decided to appeal to the local authorities of Mykolayiv to join the decision of their colleagues from other cities of Ukraine, which already remitted land tax for defense enterprises. In SE “Mykolaiv Shipbuilding Plant” case, it’s about 700 thousand hryvnias land tax per month, which is about 8.5 million UAH per year - accrued despite the state of the enterprise.              

SE "GENERATOR": UNIQUE STRATEGIC ENTERPRISE REVIVED

SE "GENERATOR": UNIQUE STRATEGIC ENTERPRISE REVIVED SE "GENERATOR": UNIQUE STRATEGIC ENTERPRISE REVIVED UKROBORONPROM SE "Generator" is a unique enterprise of strategic importance to the security of Ukraine. Unique high-tech devices for high-tech radiolocation and aviation systems are developed here. In fact, its products have a direct impact on the work of many Ukrainian radars and long-range anti-aircraft missile systems S-300. Thanks to the anti-crisis measures, this Kyiv-based enterprise that received no orders since 2009 up till the second half of 2014, today demonstrates regular income, wage growth and has regular orders to ensure Ukraine's defense capability. SE "Generator" is the only enterprise in Ukraine and one of the few companies in the world that manufactures and owns technology for the manufacture of microwave vacuum devices, including klystrons, which serve as the basis for all powerful microwave transmitters, primarily those, used in radar stations. "Generator" products enable working of Ukrainian radar stations, manufactured by “Iskra,” the Ukrainian Army is armed with. In addition, “Generator” products are used in the most powerful Ukrainian S-300 anti-aircraft missile systems. Unique technological processes - using such rare elements as tantalum, tungsten and molybdenum, requiring special conditions for the processing and use of atomic-hydrogen welding in special installations - are used for the manufacture of the given product. "Generator" workers’ commitment allowed saving these technologies during the destruction of the enterprise from 2009 to 2014. Left without orders and reserves, the enterprise was made bankrupt. The situation has changed dramatically in the second half of 2014 due to effective anti-crisis measures. "Generator" received orders, restarted production, replaced Russian suppliers by companies from Europe and China, in the framework of import substitution program, and continued its work on strengthening Ukraine's defense capability. As a result, SE “Generator”, that completed the year 2014 with UAH 8.5 million losses, in 2017, according to operational data, received 1.5 million UAH profit, which is 150% more than in 2016. In general, last year the enterprise sold products at UAH 64.1 million. At the same time, the average salary of the enterprise, which in 2014 was only about 2 thousand UAH, has grown to almost 6 thousand in 2017 and is paid on time and in full. The issue of attracting young specialists to production facilities is being solved effectively. Over the past year, two leading universities of Ukraine - Kyiv Polytechnic Institute and Taras Shevchenko National University of Kyiv - jointly opened Educational and scientific production center on the basis of the enterprise, as well as branches of their departments.  And now, students and teachers of these universities are involved in solving scientific and production problems. Today, effective UOP management solutions have pushed the "Generator" out of the crisis, having secured stable profits, established favorable conditions for further development. In 2018 the enterprise has stable orders and entered the newly creation of Radar and Electronic Warfare cluster. That will allow uniting the scientific and production potential of the leading Ukrainian enterprises of radar field and will enable development of new high-tech military equipment samples.