UKROBORONPROM: ALL ABOUT SECRECY, FINANCIAL ISSUES AND NEED FOR REFORM – VIDEO

SC"UkrOboronProm" (UOP) Deputy Director General for Foreign Economic Activity Denys Gurak and Verkhovna Rada deputy Oksana Syroyid in live broadcast on one of Ukrainian channels explained the necessity of reform of the military-industrial complex of Ukraine.

During the live broadcast, held on 25 November, deputy Oksana Syroyid expressed her determination to conduct extremely important reform of the defense industry complex and supported UOP in this. It should be noted that the deputy’s vision of ways to reform coincides with those of the State Concern, the Reform strategy was represented in October in the framework of the exhibition "Arms and Security".

To implement the reform strategy the State Concern has already provided Verkhovna Rada with a number of bills, allowing to implement reform and attract foreign investment, create a transparent management structure and move away from the old post-Soviet legal system in the military-industrial sphere.

"We are trying to convince deputies of the need for legislative changes. That is why we have developed more than 10 extremely important bills that we ask the parliament to accept ", – said Deputy Director General of the SC “UkrOboronProm”. (UOP)

Oksana Syroyid stressed her readiness to support the necessary changes in laws, provided the existing system of protection of state secrets. In turn, as noted by Denys Gurak, currently existing standards do not fully meet the requirements of security in today’s world of high technology and up to 2014 they served, including among other things, concealing military equipment sales.

"The current legislation on the access to state secret should be reformed. Now it is a throwback to old Soviet system and it does not protect information that is extremely important to national security,"- said Deputy Director General of the SC “UkrOboronProm.” Stressing that the existing legislation in this area actually prevents UKROBORONPROM from MTC. "We need to protect innovation, technology and scientific opinion, state interests" – he added.

The question of UOP financing and distribution of state defense order became a separate conversation topic. "UkrOboronProm" neither forms a state defense order, nor distributes the budget funds.

"The Ministry of Defence of Ukraine, the National Guard and other power structures are responsible for the issues, mentioned above, as the customer. They negotiate absolutely every penny, deciding how much should cost each arms sample manufacture or repair according to  so called cash-calculation information "- said Denys Gurak. Adding that there is a stereotype that the Concern is a monopoly in the "defense", though, as it has been already emphasized, "UkrOboronProm" has a share in the State defense order, amounting to 32.6%.

At the same time, it should be noted that virtually the entire burden of financing the creation of new weapons for the needs of the Ukrainian Army "UkrOboronProm" bears alone.

"For 2.5 years" UkrOboronProm" received only 30 million UAH from the state budget for development. Compared with the cost of modern weapons development –it’s next to nothing. At the same time, "UkrOboronProm" invested 1.3 billion UAH of working capital. We are very pleased that next year the Concern will no longer pay the 75% nett surplus – 30% only. So we will have the opportunity to invest the working capital into the development of enterprises ", – said Deputy Director General for Foreign Economic Activity of the SC “UkrOboronProm "Denys Gurak.

It should be noted that the estimated cost of modern weapons development amounts to tens and hundreds millions of dollars, and in some cases – billions. For example, according to official data, the development of modern US fighter of 5th generation F-35 of Locheed Matrin production is worth more than 50 billion US dollars. Development of modern tank K2 South Korea is worth more than $ 200 mln UAH.