REFORM OF SPECIALIZED EXPORT-IMPORT COMPANIES WILL LAST UP TO 2 YEARS – MYKHAILO MOROZOV

The State Concern “Ukroboronrpom” has begun the reform of the specialized export-import companies and sales function itself that will last up to 2 years. Mykhailo Morozov, Deputy Director General for Marketing and Sales of the Concern told the details of the reform to the League. Business.

“This is quite serious reform. It is difficult to specify the exact timing of its implementation, although we plan to finish it in one-two years however we start the reform now. When we decided which specialized export-import company to leave and which to eliminate we took into consideration first of all statistics and performance indicators each of them: the number of employee, their efficiency, the volume of contracts and so on,” – says Mr. Morozov.

The reform will take place in several steps. The first step is the disposition of “Promoboronexport” (the smallest enterprise with 30 employees and a small presence at the markets) and the transition of these employees to “Ukrspecexport” and “Spetstechnoexport”.

The second company that will be changed soon enough – “Ukroboronservice” – it is quite large enterprise (701 employees work here), however the volume of export is only USD 20 million. We want to make it a purely production structure (since they have large production capacity). The export license for export of its own products and services will remain.

“We will be very careful about building the disposition of the following two. Take, for example, “Progress” Company. It is completing the first part of the contract for the supply of the antitank missiles manufactured by the State Kyiv Design Bureau “Luch”. Moreover, it has one more contract for supply of thousands of the same range of product for about USD 150 million. It is clear that there is no point in eliminating “Progress” right now. “Ukrinmash” is literally now signing the contract for An-32 aircraft repair. That is why “Progress” and “Ukrinmash” will work untill all the contracts (old and new ones) will be fulfilled, however we will start the employees transfer to “Ukrspecexport” and “Spetstechnoexport”, – explains Deputy Director General.

He adds that in the second phase we must stay with two leaders-specialized export-import companies (“Ukrspecexport” and “Spetstechnoexport” with the common back-office (that will concentrate the specialists in marketing, sales, lawyers and so on). Until that moment, Ukroboronprom will get a license for independent export activity.

“We will not liquidate the legal entities of any specialized export-import companies until all existing contractual obligation are fulfilled”, – underlined Mykhailo Morozov.

The final structure involves a centralized position with strong back-office and marketing. At the same time, we leave two “hands”: “Ukrspecexport” and “Spetstechnoexport”. Nevertheless, they will be shortened in terms of number of employees, as Concern itself will take a part of the functions.