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UKROBORONPROM WILL TRANSFER MANAGEMENT OF 30 ENTERPRISES TO THE STATE PROPERTY FUND OF UKRAINE

UKROBORONPROM WILL TRANSFER MANAGEMENT OF 30 ENTERPRISES TO THE STATE PROPERTY FUND OF UKRAINE 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.

MYKHAILO ZGHUROVSKYI: INTERNATIONAL AUDIT IS AN IMPORTANT STAGE OF UOP REFORM

MYKHAILO ZGHUROVSKYI: INTERNATIONAL AUDIT IS AN IMPORTANT STAGE OF UOP REFORM 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.

UOP IMPLEMENTS POLICY FOR IMPROVING QUALITY AND STANDARDIZATION IN THE FIELD OF WEAPONS AND MILITARY EQUIPMENT MANUFACTURE

UOP IMPLEMENTS POLICY FOR IMPROVING QUALITY AND STANDARDIZATION IN THE FIELD OF WEAPONS AND MILITARY EQUIPMENT MANUFACTURE 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 WILL HOLD CONSULTATIONS WITH POTENTIAL PARTICIPANTS OF THE TENDER FOR UOP INTERNATIONAL AUDIT

UKROBORONPROM WILL HOLD CONSULTATIONS WITH POTENTIAL PARTICIPANTS OF THE TENDER FOR UOP INTERNATIONAL AUDIT 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.

UKRAINE AND USA WILL BUILD NEW COMBAT MODULE IN ACCORDANCE WITH NATO STANDARDS

UKRAINE AND USA WILL BUILD NEW COMBAT MODULE IN ACCORDANCE WITH NATO STANDARDS 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.

NEW TEST BENCH AT MALYSHEV PLANT

NEW TEST BENCH AT MALYSHEV PLANT NEW TEST BENCH AT MALYSHEV PLANT New test bench is set at UKROBORONPROM SE “Malyshev Plant”. The equipment will be used to test gearboxes for tank engines. This bench will accelerate military equipment testing, making this process more accurate and automated. "We had older analog test benches. It was decided to buy a promising bench that can perform necessary operations, corresponding to European standards", - said the Deputy Chief Engineer for modernization Dmytro Dolotin. The test bench is fully automated, with the most up-to-date equipment installed. It is unique: it allows real-time measuring of the necessary parameters. With software, all results will be recorded, and the computer will analyze and calculate those. The specialists will then receive a fully completed test report. Now the test bench is being tested, after the tests, the plant will start operating it.

VERKHOVNA RADA CHAIRMAN ANDRIY PARUBIY VISITS UOP BOOTH AT EUROSATORY-2018

VERKHOVNA RADA CHAIRMAN ANDRIY PARUBIY VISITS UOP BOOTH AT EUROSATORY-2018 VERKHOVNA RADA CHAIRMAN ANDRIY PARUBIY VISITS UOP BOOTH AT EUROSATORY-2018 In the framework of the 26th international exhibition Eurosatory-2018, the Chairman of the Verkhovna Rada of Ukraine Andriy Parubiy visited the booth of Ukrainian manufacturers, represented by the State Concern "UkrOboronProm"(UOP). Andriy Parubiy inspected samples and models of weapons and military equipment of Ukrainian production. Having expressed gratitude to UOP employees, the Chairman of the Verkhovna Rada of Ukraine stated: "I am proud of Ukrainian manufacturers, honorably representing Ukraine at the world level." According to him, Ukrainian manufacturers can count on support of legislative MIC initiatives. On the initiative of UOP leadership, a working group has been created to develop a new version of the Law of Ukraine "On State Defense Order", that will increase the defense capability of Ukraine, improve planning and formation of the state defense order. In addition, the State Concern prepared bills, envisaging corporatization of the State Enterprise "Antonov" and other state-owned enterprises of defense industry. Approval of these projects by the Verkhovna Rada will increase competitiveness of enterprises in foreign markets, making those attractive for investment. At the same time, the bill on liberalization of import of products, works and services for defense purposes is under development. The document will enable state customers to independently import military products for their needs.            

OLEG HLADKOVSKIY: WE ARE CHANGING APPROACHES TO THE FUNCTIONING OF THE DEFENSE-INDUSTRIAL COMPLEX FOR OUR ARMY TO BECOME ONE OF THE BEST IN THE WORLD

OLEG HLADKOVSKIY: WE ARE CHANGING APPROACHES TO THE FUNCTIONING OF THE DEFENSE-INDUSTRIAL COMPLEX FOR OUR ARMY TO BECOME ONE OF THE BEST IN THE WORLD OLEG HLADKOVSKIY: WE ARE CHANGING APPROACHES TO THE FUNCTIONING OF THE DEFENSE-INDUSTRIAL COMPLEX FOR OUR ARMY TO BECOME ONE OF THE BEST IN THE WORLD The 26th the International Land and Air Defense and Security exhibition "Eurosatory-2018" is taking place from June 11 to 15 in Paris. The Ukrainian delegation is headed by First Deputy to the Secretary of the National Security and Defense Council of Ukraine Oleg Hladkovskiy, informs NSDC Press-service. Mr. Hladkovskiy discussed with the heads of the leading world defense companies of NATO member countries the prospects of expanding cooperation as a guarantee of successful rapprochement of Ukraine with the Alliance. "Currently, we are actively transforming the defense industry of our country. I am confident that the assistance of NATO member states will remain unchanged, as is our desire to adhere to the NATO membership course. A difficult road is ahead, but step by step we are changing approaches to the functioning of the defense-industrial complex for our army to become one of the best and most advanced in the world", - First Deputy to the Secretary of the NSDC of Ukraine noticed. According to him, Ukraine has made massive progress in the development of the Ukrainian defense-industrial complex, as evidenced by the new developments of modern weapons and military equipment and their production for the needs of the army. "We must not dwell on what has been achieved, but continue at the same pace. One of the next steps should be the corporatization phase, which will attract investment and establish an effective public-private partnership that works successfully in all NATO member countries. And here we also look forward to the Alliance's help and experience", - Mr. Hladkovskiy added.