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UOP "ISKRA" ENHANCED ARMED FORCES OF UKRAINE HAVING TRANSFERED RADAR STATIONS 79K6 AND 35D6 TO THE MILITARY UKROBORONPROM SE “Scientific and Production Complex “Iskra” - in the presence of the President of Ukraine Petro Poroshenko - transferred radar stations, intended to control the airspace and to guide air defenses, to Ukrainian soldiers. "You have made the impossible – restored production in such a short period of time. In the occupied territories – where the production facilities remained – you saved the documentation, saved the experience. You accepted designers to your team. You’ve done everything to ensure that the state’s defense capability won’t weaken. Your contribution to the defense capability of the country is extremely high," said Petro Poroshenko and thanked the team for selfless work. One of the latest “Iskra” developments - 79K6 - already operated by the Armed Forces of Ukraine – is among the transferred radar stations. It is a 3-D surveillance radar, allowing to identify air targets at distances up to 400 km, to submit their coordinates to air defenses for immediate reaction and destruction of the enemy. A high mobility – allowing to deploy the system up to 30 minutes– is the main feature of 79K6. Also, the military received a 35D6 radar and 19Zh6, upgraded to 35D6M radar. These radars are intended for detection of targets at small and medium altitudes under the conditions of active and passive interference, providing coordinate and track data, as well as for working as a part of modern automated air defense systems and for target pointing for AA missile systems. Ukroboronprom 23.06.2018, 12:09

CONTRIBUTION MADE BY EACH OF YOU IS NOT LESS THAN THE ONE OF SOLDIERS ON THE FRONTLINE – PRESIDENT TO “ISKRA” EMPLOYEES During his working trip to Zaporizhzhya Region, President Petro Poroshenko visited SE “Scientific and Production Complex “Iskra” and talked to employees. The Head of the State also took part in the transfer of modern equipment samples, manufactured by “Iskra” for the Armed Forces of Ukraine. The Head of the State stressed that the plant's products play an important role in protecting the independence, sovereignty and territorial integrity of Ukraine, and thanked the personnel for diligent work and high professionalism, informs the Press Office of the President. The President stressed that it is very important that high-tech military production is based on the use of Ukrainian components or those, manufactured in cooperation with partner countries of Ukraine. Petro Poroshenko said that "Supply of the Ukrainian Army is to be a priority and only then - military-technical exports". "First of all, we are to meet the needs of the Ukrainian Armed Forces, and so we allocate 5% of GDP to equip the Armed Forces, which has never been in the history of Ukraine," emphasized the President. He also noted that the funds of the returned $ 1.5 billion - stolen from the people of Ukraine by the previous government - are directed not only for equipping comfortable hostels for the military, but also for procurement of modern weapons, manufactured by the military-industrial complex of Ukraine. The President emphasized that development and launching of “our counter-battery stations, which, in their characteristics, are higher than those we offer in foreign markets" became possible due to priority of supporting the domestic military-industrial complex. The same applies to 3D radar stations. "This pearl of the military-industrial complex of Ukraine plays an extremely important role in ensuring defense capability of the state," said Petro Poroshenko about the SE “Scientific and Production Complex “Iskra”. "The main capital is people, the working hands. It's because of you your work, your team - a unique team, saved under difficult conditions," the President emphasized the importance of 100% loading of the military-industrial complex for the Armed Forces of Ukraine. He also added that the Law "On National Security of Ukraine", approved yesterday by the Verkhovna Rada, will guarantee the budget financing of the military-industrial complex for the coming years. "The contribution made by each of you to the defense capability of the country is no less than the contribution of the soldier on the front line, the contribution of the diplomat, ensuring support of the world coalition for Ukraine," - said the President to “Iskra” employees. "You have made the impossible - restored production in such a short period of time. In the occupied territories - where the production facilities remained - you saved the documentation, saved the experience. You accepted designers to your team. You’ve done everything to ensure that the state's defense capability won’t weaken. Your contribution to the defense capability of the country is extremely high," said Petro Poroshenko and thanked the team for selfless work. Ukroboronprom 23.06.2018, 9:04

UKROBORONPROM FILED A LAWSUIT ON PROTECTION OF BUSINESS REPUTATION AFTER “NOVOE VREMIA" PUBLICATION ON BMP-1AK PROCUREMENT SC "Ukroboronprom" filed a lawsuit on the protection of honor, dignity and business reputation after publication of false information by "Novoe Vremia" ("New Time") in April 2018 on BMP-1AK procurement in the framework of MTC with Poland. The lawsuit is filed in the Podilsky District Court of Kyiv on June 13. Respondents are the author of the publication – journalist Ivan Verstiuk and "Publishing House of Media-DK" Ltd., issuing "Novoe Vremia". The State Concern requires publication of the refutation of inaccurate information in the publication. There is no claim for material compensation. The publication discredits the business reputation of UKROBORONPROM and its foreign partners. It jeopardizes an uncompleted contract for BMP-1 supply for the Armed Forces of Ukraine, as well as planned procurement of arms in the EU countries. UKROBORONPROM, as before, is open to cooperation with media and supports principles of responsible, objective journalism. That is why our principled position is to restore the business reputation of the State Concern and to refute the false and unreasonable accusations.   Ukroboronprom 22.06.2018, 12:09

UKROBORONPROM WILL TRANSFER MANAGEMENT OF 30 ENTERPRISES TO THE STATE PROPERTY FUND OF UKRAINE UKROBORONPROM (UOP) Supervisory Board supported the proposal of UOP management to transfer the management of some enterprises participants to the State Property Fund of Ukraine (SPFU). Such a decision was made during the meeting of the leadership and the Supervisory Board of the SC "Ukroboronprom" with representatives of the Independent Defense Anti-Corruption Committee (NAKO). About 30 UOP enterprises that have no active production cycle, are not involved in the production of military products or strategic tasks in the field of defense. "Based on the analysis of the activities of UOP enterprises-participants, a group of enterprises –specializing in the manufacture of civilian products – is distinguished. These UOP enterprises are not involved in the production of weapons and military equipment. It would be logical to transfer such enterprises to the management of the State Property Fund, which has more effective mechanisms for their financial recovery, or for privatization," said Pavlo Bukin, UKROBORONPROM Director General. In turn, UOP Supervisory Board supported such a proposal and considers it to be rational. In the opinion of the Chairman of the Supervisory Board, Mykhailo Zghurovskyi, the transfer of individual UOP enterprises to SPFU management will allow them to concentrate on civil production and be effective outside the defense industry. In addition, an important step in UOP reform is structural reorganization of the State Concern management, to be completed by July 3, 2018 and corporatization of its enterprises-participants. It is expected that investments into enterprises will increase their production capacity. At the same time, UKROBORONPROM representatives emphasize the importance of production localization in the territory of Ukraine. The meeting participants also discussed issues related to the newly formed clusters - groups of enterprises, with similar specialization. At the moment, five clusters are created: aviation, armored vehicles, shipbuilding, radar and precision weapons clusters. UKROBORONPROM representatives believe that clusters will strengthen coordination of work of individual enterprises, allowing those to use their technological capabilities and resources more effectively, to perform complex tasks on production, modernization and repair of armament and military equipment. Ukroboronprom 20.06.2018, 16:57

MYKHAILO ZGHUROVSKYI: INTERNATIONAL AUDIT IS AN IMPORTANT STAGE OF UOP REFORM Conducting an international audit of the SC “Ukroboronprom” (UOP) will help the Supervisory Board fulfill its obligations and bring the State Concern to the world management standards. This was stated by Volodymyr Ogryzko, Co-chairman of the Independent Defense Anti-Corruption Committee (NAKO), at a joint press conference with the head of the UOP Supervisory Board Mykhailo Zghurovskyi. NAKO representative expressed belief that the audit will restore the trust of society, investors and international partners to the State Concern, and will therefore be an important step in the UOP reform. According to Mykhailo Zghurovskyi, today the process of conducting an international audit and formation of appropriate tender procedures has been unblocked. It should be noted that NAKO provided recommendations to UOP Supervisory Board regarding the aspects to be included in the tender. The respective proposals were considered by the Supervisory Board and the Tender Committee of the State Concern. Therefore, tender documentation contains the following: strategic consulting, corporate governance assessment, legal review, diagnostics and independent financial audit. Currently, tender procedures are taking place, taking into account these changes. The deadline for submission of applications was extended from June 18th till September 28th. This will allow engaging more auditors in the tender. The Chairman of the UOP Supervisory Board noted the positive changes in the reform process. Yes, clusters - that will unite UOP enterprises and will contribute to solving more complex issues - are being created. We are talking about aviation, armored vehicles, shipbuilding, radar and precision weapons clusters. NAKO emphasizes the importance of establishing UOP Supervisory Board as a key step towards effective management of the State Concern. Ukroboronprom 20.06.2018, 8:23

UOP IMPLEMENTS POLICY FOR IMPROVING QUALITY AND STANDARDIZATION IN THE FIELD OF WEAPONS AND MILITARY EQUIPMENT MANUFACTURE Increasing efficiency of the quality management system, introducing new production standards - including NATO standards - addressing systemic issues of the life cycle of weapons and military equipment, as well as improving qualifications of specialists in the field of quality, standardization and metrology, are the main components of UKROBORONPROM (UOP) policy in the field of weapons and military equipment manufacture. These and other questions were discussed during the scientific and practical seminar, held at the State Enterprise "Malyshev Plant". The event was attended by representatives of the Ministry of Defense, the General Staff of the Armed Forces, National Accreditation Agency of Ukraine, research institutions, the Institute of Metrology, public organizations and forty UOP enterprises. Thus, the participants consider it necessary together with the relevant structural units of the Ministry of Defense to identify and resolve the priority issues of standardization in the field of production and repair of military equipment. First of all, it is about improving the procedure for submission and satisfaction of possible customer claims about weapons and military equipment, repaired by UOP enterprises. Also, the mechanism for determining warranty obligations after weapons and military equipment repair - according to relevant contracts - requires further work. According to the seminar participants, it is worth creating an electronic information database on issues of quality, standardization and metrology in the field of production of weapons and military equipment, in accordance with the existing opportunities of UOP enterprises. It should contain a list of standards, testing equipment, laboratories, etc. at the enterprises. Creation of such an information base will allow internal co-operation deepening and saving resources. The seminar also addressed the question of compliance assessment of the products, manufactured in the framework of import substitution and standardization of import substitution procedures. According to the results of the seminar, it is proposed to continue training for specialists of UOP enterprises-participants on issues of quality, standardization and other areas, related to production of weapons and military equipment and the implementation of the state defense order. Ukroboronprom 19.06.2018, 9:18

UKROBORONPROM WILL HOLD CONSULTATIONS WITH POTENTIAL PARTICIPANTS OF THE TENDER FOR UOP INTERNATIONAL AUDIT The Tender Committee of the SC "Ukroboronprom" (UOP) initiates consultations with potential participants of the tender for conducting an international audit of UOP activities. The corresponding decision was adopted on June 15 with regard to the appeal, made by a number of leading audit firms, about the need to improve technical task and tender documentation. In particular, such offers came from Baker McKenzie, Baker Tilly, Ernst & Young. At the request of Western partners and the Independent Defense Anti-Corruption Committee (NACO), the State Concern has changed the terms of the tender from the "financial survey" to "financial audit according to international standards" and this resulted in a number of remarks. However, the audit - unlike the survey - was clearly regulated by law and some aspects were not taken into account during the preliminary adjustment of the tender conditions. The State Concern representatives believe that previously announced terms of the tender will not receive the required number of proposals. This is confirmed by numerous statements of the leading companies about the impossibility of timely submission of proposals through adjustments to tender requirements. The deadlines for submission of documents - for potential tenderers - are postponed until September 28, 2018 to avoid cancellation of the tender, to make necessary revisions and to receive qualitative offers. Independent UOP audit will be conducted in accordance with international standards, including public reporting and access of auditors to all necessary information. UKROBORONPROM will become the first state industrial association in the history of Ukraine that will undergo international audit. 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. Ukroboronprom 18.06.2018, 14:16

UKRAINE AND USA WILL BUILD NEW COMBAT MODULE IN ACCORDANCE WITH NATO STANDARDS UKROBORONPROM SE “SpetsTechnoExport” and one of the leading US companies, specializing in the manufacture of small arms, signed a Memorandum of Cooperation on building a joint combat module according to NATO standards. Relevant negotiations and signing of the document took place on June 14 in the framework of the 26th international exhibition Eurosatory-2018. According to the Memorandum, American company will supply machine guns for combat modules. Production will be organized at one of UKROBORONPROM enterprises. In addition, the company from the United States has shown interest in the joint production of non-standard weapons. The parties expect that the combat module will be supplied to the Armed Forces of Ukraine, as well as in the interests of third countries. It should be noted that Ukraine follows the course of joining the North Atlantic Alliance. The signing of this Memorandum is one of the steps towards the introduction of NATO standards for the manufacture of weapons and equipment, aimed at the compatibility of arms of Allies countries and Ukraine. Ukroboronprom 15.06.2018, 12:48