IMPORT SUBSTITUTION: 21 REGIONS, 394 ENTERPRISES, 200 000+ JOBS

UKROBORONPROM completed the 1st stage of the large-scale program of joining Ukraine’s regions to import substitution program, as a result of which enterprises of various forms of ownership, especially small and medium-sized businesses, work to strengthen the state’s defense capability.

This work is strategically important for the country. Import substitution and cooperation with Western partners allowed to ensure technological independence of Ukrainian defense industry. In addition, the number of Ukrainian industrial enterprises, having joined MIC work, keeps growing; this contributes to uninterrupted products supply, as well as enhancing competition on the market.

In fact, thanks to import substitution program, UKROBORONPROM engages defense industrial potential of our country, working for Ukraine. Taking into account strategic importance of this program, UOP Press Service publishes expanded material on import substitution in the defense sector.

Ukrainians for Ukraine

Starting from 2014, UKROBORONPROM initiated 21 memorandums with regional and city state administrations in the field of defense industry of Ukraine. In the near future, the last four regions – Kyiv, Rivne, Chernivtsi and Donetsk – are to join the import substitution program.

Each of these memorandums allows creating a platform for continuous dialogue between the UOP enterprises, representatives of the Armed Forces of Ukraine and local manufacturers. 394 enterprises – providing work for more than 200 thousand specialists – are working for defense complex of Ukraine.

For example, in the production of the newest armored vehicles BTR-4, as of 2014, it had 45% of Russian components and 45% – Ukrainian, and another 10% – imported. In 2015, the number of Russian components was 0%, and 35% – imported from other countries;d in 2017, Ukraine independently produces 88% of all aggregates and units for BTR-4, importing 12% only.

Ukrainian enterprises will receive orders UOP enterprises-participants for the manufacture of components for armament, research and development works in the field of defense, military and dual-use products manufacture.

The range of products is constantly getting more complex, today enterprises mastered manufacturing of components for modern electronic fire control systems, weapons stabilization systems, distribution boxes, differentials and other products, demanding use of high-tech production methods.

Small-scale business enterprises

In import substitution program, UKROBORONPROM  is focused on cooperation with small-scale business enterprises; today their share in the total volume of cooperation reaches 65-70%. Such a choice is associated with high mobility of the capacities of small-scale business enterprises and their readiness to use modern production methods. All of the above, combined with strict quality control at UOP enterprises and open competition, allows the Armed Forces of Ukraine to get the best Ukrainian products.

At the same time, "Ukroboronprom" considers its role as an integrator of domestic defense industry, which creates common partnership rules, cooperation standards, a start-up information platform to support Ukrainian enterprises on the world market, engaging domestic manufacturerd in innovative defense projects development.

Signing of the memorandums of cooperation is only the 1st stage of the work, followed by extending of the list of Ukrainian enterprises, joining defense industry and scaling the results of this cooperation.

For example, if at the beginning of 2016 only 20 enterprises of Kharkiv region worked with the UOP enterprises-participants, while in the beginning of 2017- 62 of those, which is three times as much. Such dynamics is observed in practically every region of Ukraine. As a result, for example, 72% of the industrial capacity of Cherkassy region is already involved in the work for Ukraine’s defense industry, which is 36 industrial enterprises that can manufacture products for the defense industry.

"Today UKROBORONPROM is finishing the first stage of the strategic program, thanks to a dialogue with local administrations, business and the Armed Forces, we managed to unite Ukrainian industry enterprises for strengthening Ukraine’s defense. Creating such a system is a real rebirth of Ukrainian defense system, which used to be torn-apart three years ago. Today UKROBORONPROM aims to scale the result and, thanks to cooperation with Western partners, to expand the modern digital era product line: electron-optical surveillance system, information components, advanced avionics, etc. ", – emphasized the head of the State Concern Roman Romanov.