UKROBORONPROM IN 2017: LARGE-SCALE REFORM IMPLEMENTATION

In 2017, the State Concern "UkrOboronProm" launched practical stage of its reform – comprehensive transformation, including strategic planning, international audit and restructuring.

For the first time in Ukraine’s history, such a large-scale transformation of the state industrial union will be carried out, and the leading consulting company or even a consortium of world-class companies with effective defense industry experience will be engaged.

UKROBORONPROM established a Tendering committee to select the international consulting company using "competitive dialogue" procedure.

These measures will allow development of the most effective means for growth of the entire defense industry of Ukraine. UOP transformation will meet the requirements of Ukraine’s Euro-Atlantic integration. It will provide for openness of such an industrial giant as UKROBORONPROM, strengthening international cooperation and optimizing innovation processes.

Engaging strategic consultants would allow transparent and rational assessment of UOP assets, to develop a clear plan for corporatization of enterprises with the further possibility of creating effective production clusters.

Corporatization of UOP enterprises would allow to create transparent management structures, Supervisory Boards, establish common rules, including those for international investors.

In 2017 the first steps in corporatization of UOP enterprises were taken – preparation procedure for corporatization of the two leading UOP enterprises: SE “Antonov” and SE “Plant 410 of Civil Aviation”.

Corporatization allows transition to modern Western management system, reorganizing the enterprises into public joint stock companies in which 100% of shares belong to the state.

This reorganization opens the way for Ukrainian and foreign partners who will receive clear, universally accepted rules of investing. This will allow to increase production, modernize equipment, scale scientific activity and launch new promising projects. Such giants of aircraft industry, as Boeing, Airbus and Lockheed Martin, are joint stock companies.

In accordance with the reform plans, UOP enterprises SE "Antonov" and SE "Plant 410 of Civil Aviation" will go through a complicated physical inventory and property valuation procedure, carried out by reputable companies, selected by open tendering process. After that, all 100% shares will be issued and transferred to the state.