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NADIIA VASYLIEVA WAS APPOINTED AS DEPUTY DIRECTOR GENERAL FOR DIGITALIZATION AND INNOVATION OF UKROBORONPROM Director General of Ukroboronrpom Aivaras Abromavicius appointed Nadiia Vasylieva as Deputy Director General for Digitalization and Innovation of the Concern. The main task is to create an innovative ecosystem for the military industry based on Ukroboronprom. The main directions of its implementation should be noted: 1. Digital transformation of the enterprises-members of the Concern, which means creation of customer-oriented innovations in products and processes, as well as creation of new flexible business models of development and production in partnership and cooperation; 2. Construction of a virtualized Joint Competence Center with the Scientific and Technical Council with sectoral directions inside, which should strengthen the work of design bureaus and enable commercialization of innovations; 3. Preparation of technology transfer for joint ventures and the possibility of rapid implementation of innovations with the involvement of research institutes, startups, scientists, innovators, inventors; 4. Creation of a cyber-subdivision that will build new products based on data or using it; 5. Implementation of project activity on the basis of flexibility and efficiency, as well as development of a modern communication system. Nadiia Vasylieva is PhD in Economics as well as a Master in International Law, holds a postgraduate degree in marketing of British CIM and held an EMBA, is a graduate of American MIT in Digital Transformation. She was the CEO of “Microsoft Ukraine”. Ukroboronprom 15.11.2019, 10:35

IN MACHINE BUILDING PEOPLE DETERMINE EVERYTHING – ROMAN BONDAR People are most important in machine building. If these people create new technologies, they need to be implemented quickly. Otherwise, we come back to the fact that all our pride is the Soviet designs. This was emphasized by Roman Bondar, Deputy Director General of Ukroboronprom, in the interview with Mind. One of the main problem with the lack of engineers at the state enterprises is law salaries. International competing companies offer much more.  “The salary of constructors at one of our main enterprise is UAH 15 000, and two blocks away there is a foreign company which created R & D-center, and they offer a salary of UAH 75 000”, - Roman Bondar has commented.   Therefore, to fight for engineers for Ukroboronprom it is extremely important to be able to compete with the companies that provide their specialists with standards, technologies, English training and in five time higher salary. A positive example of effective management and professional engineers’ involvement is the State Kyiv Design Bureau “Luch”. The enterprise manufactures missiles, and it is ahead of the technical characteristics of many international analogues. The recipe for success is simple: Oleh Korostelyov, talented general designer, has assembled a team, who has a clear purpose – to create the best missiles in the world. Based on the production shop, the general designer has created a certain semblance of mass production to manufacture the missile samples that are in demand at an exponential rate. An average salary at the enterprise is UAH 59,000. Ukroboronprom 13.11.2019, 11:13

OLEKSANDR BERCHII WAS APPOINTED AS THE DIRECTOR ON CORPORATISATION OF UKROBORONPROM Aivaras Abromavicius, Director General of Ukroboronprom appointed Oleksandr Berchii as a director on corporatization of the Concern. ГThe main task is corporatisation of the defence industry concern with a purpose of creation a transparent, clear and effective structure with modern approaches to corporate governance. The main directions of its implementation are the following:  - Careful approach to privatisation, assets optimisation that will provide additional internal resources of development with the consideration of responsible social protection of employees; - Enhancement of intellectual property protection; - Development and modernization of technological and design potential; - Establishment of corporate governance in subordinated joint-stock companies that will be focused on the result, not the process; - Close cooperation and effective coordination between management teams within the Ukroboronprom, public authorities and the public aimed at the rapid implementation of changes. Oleksandr Berchii hold a position of the audit director at Ernst & Young, one of the “The Big Four”, the world's largest audit firms. He has more than 17 years of working experience as an auditor, specialized in dealing with socially important public sector enterprises. Ukroboronprom 12.11.2019, 15:39

THE FIRST FINANCIAL AUDIT OF UKROBORONPROM WILL BE FINISHED WITHIN A YEAR Aivaras Abromavicius, Director General of Ukroboronprom, in an interview with Ukrinform told about the consolidated financial statements of Ukroboronprom for 2018-2019 on the international financial statements.  On October 1, the winner of the financial audit tender, which will last 12 months, was selected. The results for 2018 are expected to be in the first half of the next year, and for 2019 – in the second half of 2020. Financial audit is required, in particular, for the company to enter the foreign loan markets. Three years of international financial auditing allow companies to enter the foreign loan markets, issue Eurobonds, reduce the cost of the loan portfolio. "Now the cost of the loan portfolio is UAH 10 billion. Unfortunately, our average rate remains at the level of 21-22%, which makes the business extremely difficult. Since the payback of most projects, of course, is not so short (about four years), it does not allow you to invest in long-term projects. And when you issue Eurobonds in currency, we are talking about 6%, 7%, 8%. This is another matter and this is one of the reasons, why you need a financial audit,"- said Aivaras Abromavicius. The financial statements also provide an opportunity to enter into the projects with global giants who want to deal only with the companies whose financial statements have been audited according to the international financial standards.  Ukroboronprom 12.11.2019, 10:04

UKROBORONPROM AND AVIATION WORKERS’ TRADE UNION HAVE SIGNED THE MEMORANDUM ON COOPERATION To fulfil the instructions of the President of Ukraine Volodymyr Zelensky on preparation of the State Target Scientific and Technical Program for 2020-2030 the State Concern “Ukroboronprom” and Aviation Workers' Trade Union have signed the Memorandum on Cooperation. This decision ended the meeting conducted on November 11.   “Ukroboronprom economic policy is focused on increasing production volume, generating income, modernizing manufacturing facilities and ensuring product competitiveness by analyzing the welfare of the aircraft and missiles industries employees. Our goal is to reform the industry with a view to rapidly increasing its performance”, – said Ruslan Korzh, Deputy Director General for Aircraft and Missiles.  Yarema Zhuhaievych, the Chairman of the Aviation Workers' Trade Union stressed that the parties will take measures to optimize and increase the efficiency of production in order to improve the social and economic security of employees. During the meeting it was also stressed that Ukroboronprom together with the Aviation Workers' Trade Union will provide measures to prevent and counteract corruption and unprofessionalism by the management of the companies-members of Ukroboronprom. Ukroboronprom 11.11.2019, 17:51

UKROBORONPROM WILL DELIVER THE MINISTRY OF THE INTERIOR OF PERU WITH AN-178 The Ukroboronprom State Enterprise "Antonov" will deliver the National Police of Peru with An-178 and provide its maintenance for the whole warranty period, defined by the agreement. The Ukroboronprom State Enterprise “Spetstechnoexport” has signed the contract from Ukrainian side.  “Antonov aircraft has proved its effectiveness around the world, however new solutions and new technologies are offered by our constructors in response to the challenges of modernity. This contract has become a logical extension of Antonov aircraft usage in Peru, as a new An-178 will replace An-32B of the National Police”, - says Aivaras Abromavicius, Director General of Ukroboronprom. Additionally he expresses his gratitude and expressed hope that this agreement would become a beginning of new and great military and technical cooperation between the countries.   Ukraine participated in a public tender along with the products from Italy and Spain. “I am grateful to everyone involved in the preparation of Antonov aircraft for tender and your strong negotiating position”, - added CEO of Ukroboronprom.   According to Oleksandr Donets, the President of the SE “Antonov”, “for the customer the key factor while choosing the aircraft became the An-178 multifunctionality that means its ability to solve different tasks including transportation of cargo, containers, troops, its airdropping, usage in search and rescue missions. In addition, Antonov aircraft are famous worldwide for its unpretentious operating conditions. They can operate in different weather and climate conditions, base on different aerodromes, including high-altitude that is extremely important for Peruvian customer. We are sure that the fleet of the An-178 aircraft, which embodies all the best qualities of the glorious Antonov ubiquitos, will eventually be replenished with other newest An transport aircraft.    Аn-178  - is a medium transport aircraft intended for delivery of personnel, arms and light military equipment by landing and parachute methods, transportation of material, mail and other cargo "in bulk" or in standard containers, and cargoes on pallets with a total carrying capacity up to 18 tons. In an emergency, the An-178 can be used to evacuate the population from the disaster area, transport injured on standard stretchers, airdropping of rescue teams. Ukroboronprom 11.11.2019, 16:19

TO COMPETE IN THE GLOBAL MARKET WE NEED TO MODERNIZE – AIVARAS ABROMAVICIUS We are able to compete in the global market through flexibility. However, this requires modernizing the production and investing in design. This was reported by the Director General of the State Concern, Aivaras Abromavicius, in the interview with Ukrinform.  Currently, not only executives of particular companies are involved in the sale of large number of armament This is already becoming a state priority and is being discussed at the state level.  “In order to keep abreast we need to modernize first, we need to invest money. Unfortunately, we do not have enough money to invest in advanced technologies. Yes, we are still testing the “Vilkha” missile complex, but we need to invest more in design, testing of new armament”, - stressed Aivaras Abromavicius. Today Ukroboronprom pays about UAH 7,5 billion of taxes and dividend a year. Of this amount, about UAH 6.5 billion is taxes, and another UAH 1 billion in dividend. These funds are much needed to modernize enterprises, develop new modifications of existing armament, or create of new ones.   Ukroboronprom 11.11.2019, 11:43

(UK) "Укроборонпром" підписав новий контракт з Aselsan на поставку радіостанцій для МОУ Державна компанія "Спецтехноекспорт", що входить до складу ДК "Укроборонпром", підписала з турецькою компанією Aselsan контракт про поставки чергових партій радіостанцій УКВ зв’язку на потреби Міноборони України на суму 6 млн дол США. Новий контракт є частиною рамкової угоди між СТЕ та Асельсан на поставку турецьких засобів радіозв’язку в Україну, що було укладено у 2016 році. Дана угода реалізується за механізмом офсетних зобов’язань між компаніями і передбачає запуск їх виробництва в Україні. Нові партії систем військового зв’язку будуть поставлені у війська протягом 2020 року і стануть першими, що вироблені на території України. Налагодження виробництва турецьких систем радіозв’язку в Україні дозволяє Міністерству оборони України отримати доступ до найсучасніших технологій у сфері зв’язку. Ukroboronprom 9.10.2019, 15:54