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UKRAINE’S GOVERNMENT APPROVES ANTONOV’S FINANCIAL PLAN FOR 2021

UKRAINE’S GOVERNMENT APPROVES ANTONOV’S FINANCIAL PLAN FOR 2021 UKRAINE’S GOVERNMENT APPROVES ANTONOV’S FINANCIAL PLAN FOR 2021 Ukraine'e Cabinet of Ministers approved financial plan of the State Enterprise "Antonov", which is part of Ukroboronprom, for 2021. In particular, from now on Antonov will be able to use credit funds for the construction of three An-178 military transport aircraft for the Armed Forces of Ukraine. Ukraine's Prime Minister Denys Shmyhal signed the order on Friday, April 2. "This is an important condition for the successful implementation of the state contract, signed at the end of 2020 with the support and in the presence of President Volodymyr Zelenskyy between the "Antonov" aviation plant and Ukraine's Defense Ministry. This historic agreement provides for the production of three An-178 military transport aircrafts for the Armed Forces of Ukraine," stated the General Director of the State Concern Ukroboronprom Yuriy Husyev. In order to meet the needs of the Armed Forces in time, the company began performing the contract at its own expense. Approval of the financial plan allows using loan funds provided for in the contract with JSC "Ukreximbank". "Antonov" plant plans to complete assembling  the fuselage of the first An-178 for the Ukrainian army by May 31.

UKROBORONPROM EXTENDS COOPERATION WITH ANTI-CORRUPTION NGOS FOR TRANSPARENT OPERATION OF CONCERN’S ENTERPRISES

UKROBORONPROM EXTENDS COOPERATION WITH ANTI-CORRUPTION NGOS FOR TRANSPARENT OPERATION OF CONCERN’S ENTERPRISES UKROBORONPROM EXTENDS COOPERATION WITH ANTI-CORRUPTION NGOS FOR TRANSPARENT OPERATION OF CONCERN’S ENTERPRISES State Concern “Ukroboronprom" together with NGO "Together Against Corruption” launch a pilot project promoting transparent operation of enterprises-members of the Concern. The parties made an agreement on implementation of the project and signed a Memorandum of Cooperation on April 2. The Memorandum of Cooperation involves development of the pilot project on detecting existing corruption risks and addressing them in the activity of Ukroboronprom’s enterprises. Besides, Yuriy Husyev, General Director of Ukroboronprom, agreed with Oksana Velychko, the Head of "Together Against Corruption” NGO, to  confirm the next steps in development and implementation of complex anti-corruption programmes. “Vague procedures and noneffective practices resulting in corruption at Ukroboronprom enterprises should depart into oblivion. I’m sure that recommendations by the anti-corruption experts will help us introduce transparent, open, non-discrimination and competitive rules for all enterprises that work on strengthening Ukraine’s defensive capacity,” Yuriy Husyev said.

Yuriy Husyev discuss concern’s corporatization, reform of defense industry with G7 ambassadors

Yuriy Husyev discuss concern’s corporatization, reform of defense industry with G7 ambassadors Yuriy Husyev discuss concern’s corporatization, reform of defense industry with G7 ambassadors Yuriy Husyev, General Director of State Concern Ukroboronprom, had an online meeting with G7 ambassadors to discuss corporatization of the concern and building military technology partnership on April 1. Representatives of G7 expressed their support to the process of transformation of Ukraine’s largest state-run defense contractor. They also hope that the reform shall give an impulse for further development of Ukraine’s defence complex and have a positive impact on the state of Ukraine’s national security. “I’d like to thank the G7 ambassadors for their attention to Ukraine’s defensive industry and for their support of transformation of Ukroboronprom,” Yuriy Husyev said.

LVIV STATE AVIATION REPAIR PLANT HANDS OVER REPAIRED MIG-29UB FIGHTER TO UKRAINE’S ARMED FORCES

LVIV STATE AVIATION REPAIR PLANT HANDS OVER REPAIRED MIG-29UB FIGHTER TO UKRAINE’S ARMED FORCES LVIV STATE AVIATION REPAIR PLANT HANDS OVER REPAIRED MIG-29UB FIGHTER TO UKRAINE’S ARMED FORCES State Enterprise “Lviv State Aircraft Repair Plant”, the enterprise-member of the SC “Ukroboronprom”, handed over a repaired MiG-29UB fighter to Ukraine's Air Force. The plane has successfully undergone air trials and left for Ukraine's Army combat unit. MiG-29UB is a combat training modification of a fighter, designed to train military students and improve the combat skills of experienced pilots. "Despite the fact that our company is in a zone of economic turbulence due to the lack of state defense orders and enforced shutdowns due to Covid-19 pandemic, timely fulfilment of obligations to customers and partners remains an unchanged priority for the team," Dmytro Matrunchik, Director of Lviv State Aircraft Repair Plant, said. Lviv State Aircraft Repair Plant is the only enterprise in Ukraine that deals with restoring MiG-29 for Ukraine's defenders. The MiG-29 fighter is a main combat aircraft of the Air Force of Ukraine's Armed Forces. The multi-functionality of the MiG-29 allows performing air defense tasks and striking ground targets.

DRAFT LAW ON REFORMING STATE ENTERPRISES IN UKRAINE’S DEFENSE INDUSTRY: WHAT DOES IT CHANGE?

DRAFT LAW ON REFORMING STATE ENTERPRISES IN UKRAINE’S DEFENSE INDUSTRY: WHAT DOES IT CHANGE? DRAFT LAW ON REFORMING STATE ENTERPRISES IN UKRAINE’S DEFENSE INDUSTRY: WHAT DOES IT CHANGE? 5 facts why the state defense industry is doomed without the adoption of the draft law # 3822 on reforming state enterprises in Ukraine's defense industry. And thus our victory over the occupier. Fact 1. Out of 24,000 items of various weapons, military hardware and components, now manufactured at Ukroboronprom's enterprises, not every item is of use today. For example, we have companies that produce components for Soviet submarines. The boats we don't have. Fact 2. While successful world's defense industry companies spend up to 25% of net profit on the development of new models of weapons, in Ukraine this estimate is not more than 2 — 3%. That is why, the repair and modernization of existing (mostly old Soviet) military makes about 80% per year in the pattern of army needs. Fact 3. State defense enterprises are now deprived of long-term planning. That is, if today we decide to equip our army with a batch (and not with one item) of high-precision "Neptune" ASCM systems, combat tactical vehicles "Dozor" or "Oplot" tanks without a single cog of Russian manufacture, then we can produce not more than our state orders. In other words, if there is one item of "Oplot" in the State defence order, then the Malyshev Plant will not be able to produce two items. At the same time, every year the share of state defense enterprises in the state defence order is steadily declining: if in 2017 our enterprises accounted for 67% of all needs of the Ukrainian army in the manufacture, modernization and repair of weapons, in 2020 — it's only 36%. Fact 4. Only 28 enterprises out of 118, which are part of Ukroboronprom, generate 98% of revenue. The rest live in debt, including unpaid wages. Most of our enterprises are actually surviving, or even dying. Fact 5. The average age of design engineers working at our enterprises is 65 years. Outflow of young professionals from the state defense also foredoom the industry to extinction. Reforming Ukroboronprom by adopting the draft law #3822 is the only opportunity not only to protect country's borders, sovereignty and integrity, but also to win the war over the occupier. [gallery link="file" size="medium" columns="4" ids="11742,11743,11744,11745"] One of the major myths about the reform of Ukroboronprom is that the draft law 3822 provides for "hidden" or "explicit" privatization of defense enterprises. We emphasize: draft #3822 defines a legal framework for the reorganization of the Concern's enterprises into companies with 100% of the shares belonging to the state of Ukraine. In simple terms: 100% of the shares of the future modern defense holding, which is going to replace the Concern, will belong to the state represented by the Ukrainian government. Period. The most sensitive myth-manipulation about transformation of Ukroboronprom is that allegedly the reform will stop the work of the entire state defense industry, which, of course, is unacceptable in wartime. In fact, the draft law #3822 “On reforming the enterprises of the defense complex under public law” provides for continuous implementation of production operation at enterprises during their reorganization. Otherwise stated: the reform shall not stop operation of our defense complex. Why corporatize the state defense complex, in other words, turn state-run and state-owned enterprises into companies? And because it is a multi-layered system of continuous prohibitions and restrictions, when it comes to managing state-owned enterprises it is often more "safe" to ruin enterprises than to develop their research and production potential. Ukroboronprom manages 99 state unitary commercial and 7 state-owned enterprises. These include plants, design engineering bureaus, and special exporting companies. The Concern also manages state-owned stakes in 12 joint-stock companies. And if you are Elon Musk, a progressive company manager who thinks in terms of quantum leaps in the development of his business, then you are at risk getting a summons for questioning. At least when it comes to Ukraine. What are these prohibitions and restrictions? 1️⃣State enterprises are deprived of attracting any investment. One should agree that when is not possible, the company is not interested in working on its investment attractiveness in the eyes of investors, including international ones. Transparency, openness, accountability and good governance will never be a priority for the top management of these companies. 2️⃣It is very difficult for state-owned enterprises to take a bank loan, for example, for research and development of the latest models of armaments and military equipment (weapons). 3️⃣State enterprises (except for aircraft construction enterprises) can not establish joint ventures with foreign companies. If such enterprises emerge, the foreign partner will have a smaller share under any circumstances, regardless of the volume of investment. 4️⃣It is difficult for state-owned enterprises to combine their property, resources and technologies. Just imagine: defense companies that are part of one Concern — Ukroboronprom — are deprived of the opportunity to achieve synergies and better results in the production of weapons by exchanging, for example, their technologies. At the same time, these companies work for the defense potential of a single country — Ukraine. And by no means this is an exhaustive list. What are these prohibitions and restrictions? 1️⃣State enterprises are deprived of attracting any investment. One should agree that when is not possible, the company is not interested in working on its investment attractiveness in the eyes of investors, including international ones. Transparency, openness, accountability and good governance will never be a priority for the top management of these companies. 2️⃣It is very difficult for state-owned enterprises to take a bank loan, for example, for research and development of the latest models of armaments and military equipment (weapons). 3️⃣State enterprises (except for aircraft construction enterprises) can not establish joint ventures with foreign companies. If such enterprises emerge, the foreign partner will have a smaller share under any circumstances, regardless of the volume of investment. 4️⃣It is difficult for state-owned enterprises to combine their property, resources and technologies. Just imagine: defense companies that are part of one Concern — Ukroboronprom — are deprived of the opportunity to achieve synergies and better results in the production of weapons by exchanging, for example, their technologies. At the same time, these companies work for the defense potential of a single country — Ukraine. And by no means this is an exhaustive list. In general, such kinds of organizational and legal forms are not in the nature of world's successful defense companies. The latest walked their way of corporatization 20 — 30 years ago. For example, the Italian company Leonardo, which last year topped the ranking of transparency of world's defense companies, introduced a corporate governance model back in 2003. Corporatization today is an opportunity to restore the health of enterprises both financial and economic; to make production more technological; to attract investments; to increase competitiveness; and, finally, to introduce an effective model of governance in state defense industry. All this is provided in the draft law #3822, which is waiting for the second reading in Ukraine's parliament.

ZAPORIZHIA’S "ISKRA" HANDS OVER MODERN RADAR STATION TO UKRAINE’S ARMY

ZAPORIZHIA’S "ISKRA" HANDS OVER MODERN RADAR STATION TO UKRAINE’S ARMY ZAPORIZHIA’S "ISKRA" HANDS OVER MODERN RADAR STATION TO UKRAINE’S ARMY A new a new 3D radar system 35D6M produced at State Enterprise "Scientific and Production Complex “Iskra” in Zaporizhia, was handed over to Ukraine's Armed Forces.  The new domestic hardware is capable of operating in almost any climatic conditions, including mountainous areas. The military received modern radar with improved tactical and technical characteristics: longer range, improved trajectory processing parameters and expanded functionality with to hi-end software solutions. The state-owned enterprise "Iskra" Research and Production Complex has equipped the radar with additional remote workstations for full control at a distance of up to 300 meters. The most important feature is the 35D6M's ability to operate in almost any climate and in mountainous terrain. "We have many years of experience in manufacturing and modernization of stations like 35D6, 36D6," chief designer of survey radars of the company Dmytro Semenov says. "Iskra's highly killed experts provide constant technical support of the 3D radar system throughout the its entire cycle operation on the territory of Ukraine and abroad, which is extremely important for military equipment, which is on duty around the clock uninterruptedly, and helps protecting country's airspace. The designers of our company are ready to additionally equip and develop a unique version of the radar according to customer needs." Products by "Iskra" Research and Production Complex, in particular the export version of the 36D6M radar, are well known abroad. According to the company's director Yuriy Pashchenko, the ability to provide technical support, upgrade and update software is highly valued by foreign partners when they are choosing among other suppliers.  

Zhytomyr Armored Plant rebuilds 26 infantry fighting vehicles BMP-1AK to be supplied to Ukraine’s Armed Forces

Zhytomyr Armored Plant rebuilds 26 infantry fighting vehicles BMP-1AK to be supplied to Ukraine’s Armed Forces Zhytomyr Armored Plant rebuilds 26 infantry fighting vehicles BMP-1AK to be supplied to Ukraine’s Armed Forces Zhytomyr Armored Plant, Ukraine’s state enterprise, part of the Ukroboronprom concern, restored and prepared 26 infantry fighting vehicles BMP-1AK to be transferred for operational service with Ukraine’s Armed Forces. Those 26 infantry fighting vehicles were earlier forcibly confiscated from a Polish supplier. According to the contract signed in 2017, the Polish company "WTORPLAST S.A." was due to supply over 90 units of military hardware for the Ukrainian military three years ago. However, the Ukrainian side received only 20 cars then. "We faced a situation where a foreign partner systematically failed to meet their obligations. Thus, Ukrspetsexport had to "get" military machinery through court and enforcement proceedings", Ihor Fomenko said, acting Director General of Ukroboronprom. In July 2020, a Polish court sustained a claim by Ukraine's State Company Ukrspetsexport against WTORPLAST S.A. and ordered the latter to supply 26 units of military hardware to Ukraine, and to refund advance payments under contracts together with the court costs, which makes over $3 million. "The success was achieved due to the mutual efforts of Ukroboronprom, Ukrspetsexport, Ukraine's Ministry of Foreign Affairs and our embassy in Poland. So, I want to thank everyone involved in achieving the result", Ukrspetsexport CEO Vadym Nozdrya said. "According to the court rulings (specifically by the Court of the Republic of Poland) economic losses shall be reimbursed to the state of Ukraine. These cases were transferred to the Ukraine's State Bureau of Investigations (DBR) and National Anti-Corruption Bureau (NABU), criminal proceedings were initiated. Our task is to get complete coverage of advanced payments and losses caused by the Polish company". In October of 2020, infantry fighting vehicles were delivered to the Zhytomyr Armored Plant. The equipment arrived in an unsatisfactory technical condition and without documentation. Therefore, the company's specialists immediately began bringing the vehicles to the proper condition. "We had to eliminate the consequences of long-term storing of equipment. Chassis, engines had been inspected, all the necessary documentation had been prepared, etc. Now the vehicles fully conform to technical requirements of the customer and have already passed all necessary tests. Representatives of the Armed Forces accepted the delivery. Infantry fighting vehicles are ready to be supplied to the customer — Ukraine's Ministry of Defense", Oleksiy Zhukovets, Director of Zhytomyr Armor Plant, said.   [gallery columns="4" size="medium" ids="11582,11590,11586,11587"]

UKROBORONPROM, KYIV SCHOOL OF ECONOMICS LAUNCH EDUCATIONAL PROGRAM TO TRAIN FUTURE ELON MASKS IN UKRAINE’S DEFENCE SECTOR

UKROBORONPROM, KYIV SCHOOL OF ECONOMICS LAUNCH EDUCATIONAL PROGRAM TO TRAIN FUTURE ELON MASKS IN UKRAINE’S DEFENCE SECTOR UKROBORONPROM, KYIV SCHOOL OF ECONOMICS LAUNCH EDUCATIONAL PROGRAM TO TRAIN FUTURE ELON MASKS IN UKRAINE’S DEFENCE SECTOR On February 23, Yuriy Husyev, general director of Ukraine’s largest state-run defence contractor Ukroboronprom, and Tymofiy Mylovanov, President of Kyiv School of Economics, signed a memorandum of cooperation to establish the School of Innovators in Defense Industry. Educational program is designed primarily for the heads of the Concern's enterprises, as well as for representatives of the Ministry of Defense, the staff of the National Security and Defense Council and other special services working in Ukraine's national security and defense sector. “We began thinking about new educational projects in December last year, when it became clear that the modern scientific school is not preparing for the challenges like hybrid wars that the world faces today. Together with the Kyiv School of Economics, we are launching an educational program to educate future Antonovs, Sikorskis and Elon Masks, who will become drivers of the transformation of the defence industry complex,” Yuriy Husyev, Ukroboronprom's General Director, stressed the importance of educational projects for the State Concern. “It is a great honor for us to be involved in shaping up Ukraine's future and history. We invest our time and money in this project, as it is not profitable for us. We believe that this is a matter of national development, national security and statehood. Leaders' way of thinking must stand beyond the standards of thinking, leaders must see the problem in a new way, critically evaluate it and generate new solutions. The success of Ukraine's defense industry is based on these competencies. Unfortunately, there's no school to teach this in Ukraine, and we are ready to do it,” President of the Kyiv School of Economics Tymofiy Mylovanov said The tasks assigned to the School of Innovators are the following: to mould contemporary minds of top managers inside a public defense sector towards economy, war, finance, corporate governance and managerial competencies. In the result, Ukroboronprom's enterprises will become able to produce competitive models of armaments and military equipment, increase the Concern's share in the state defense order, and significantly expand markets for export. Lectures at the School of Innovators will be given by two former Ukrainian ministers - Tymofiy Mylovanov and Andriy Zagorodnyuk, Ukrainian Trade Representative Taras Kachka, public figures, thinkers Yevhen Hlibovytsky and Valery Pekar, director of the National Institute for Strategic Studies Oleksandr Lytvynenko. The tasks assigned to the School of Innovators are the following: to mould contemporary minds of top managers inside a public defense sector towards economy, war, finance, corporate governance and managerial competencies. In the result, Ukroboronprom's enterprises will become able to produce competitive models of armaments and military equipment, increase the Concern's share in the state defense order, and significantly expand markets for export. Lectures at the School of Innovators will be given by two former Ukrainian ministers - Tymofiy Mylovanov and Andriy Zagorodnyuk, Ukrainian Trade Representative Taras Kachka, public figures, thinkers Yevhen Hlibovytsky and Valery Pekar, director of the National Institute for Strategic Studies Oleksandr Lytvynenko. “We are aware that today the average age of design engineers at Ukroboronprom's enterprises reaches 50-65 years. That is why we need to train up a new generation of leaders capable to think about how to win the wars of the future, what the weapon of the future should look, what innovator should be there in the defense industry," Yuriy Husyev summed up. Last week on behalf of the President of Ukraine Volodymyr Zelensky Ukroboronprom signed the agreement with the National Technical University of Ukraine "Igor Sikorsky Kyiv Polytechnic Institute", about launching the School and a training program for design engineers named after Oleg Antonov.