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.